COMMITMENTS AND CONTINGENCIES

3 Months Ended

Mar. 31, 2025

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

Legal proceedings: In the normal course of business, we could be involved in various legal proceedings such as, but not limited to, the following: litigation concerning ongoing mergers and/or acquisitions, lawsuits alleging negligence in care or general liability, violation of regulatory bodies’ rules and regulations, or violation of federal and/or state laws.

On January 6, 2022, a putative securities class action lawsuit was filed against us and certain of our officers and directors in the Eastern District of New York. The case is captioned Marquez v. Bright Health Group, Inc. et al., 1:22-cv-00101 (E.D.N.Y.). The lawsuit alleges, among other things, that we made materially false and misleading statements regarding our business, operations, and compliance policies, which in turn adversely affected our stock price. An amended complaint was filed on June 24, 2022, which expands on the allegations in the original complaint and alleges a putative class period of June 24, 2021 through March 1, 2022. The amended complaint also adds as defendants the underwriters of our initial public offering. The Company has served a motion to dismiss the amended complaint. On November 1, 2024, the court issued a memorandum and order and entered judgement granting the motion to dismiss in full. The plaintiff appealed this decision on November 27, 2024.

In connection with the NEA Merger, announced on December 23, 2024, three lawsuits have been filed: two were filed in New York (Williams v. NeueHealth, Inc. et al., No. 652386/2025 (N.Y. Sup. Ct. Apr. 16, 2025); Ballard v. NeueHealth Inc. et al., No. 652405/2025 (N.Y. Sup. Ct. Apr. 17, 2025)) and one was filed in the Circuit Court for the Eleventh Judicial District of Florida (Berger v. Adkins, et al., No. [Unknown], (Fla. 11th Jud. Cir. Ct. Apr. 23, 2025)). Additionally, the Company has received certain disclosure and books and records demands in regard to the acquisition.

We intend to vigorously defend the Company in the above actions, but there can be no assurance that we will be successful in any defense.

Based on our assessment of the facts underlying the claims, the degree to which we intend to defend the Company in this matter, if needed, and the court’s ruling, the amount or range of reasonably possible losses, if any, cannot be estimated. We have not accrued for any potential loss as of March 31, 2025 and December 31, 2024 for these actions.

Other commitments: As of March 31, 2025, we had letters of credit of $7.5 million, as well as surety bonds of $19.5 million. On our Condensed Consolidated Balance Sheets, $24.8 million of the cash and cash equivalents and $7.0 million of the short-term investments is restricted as collateral to our undrawn letters of credit and surety bonds.