Wednesday, shares of DocGo Inc DCGO, a mobile medical services and transportation company, fell following the publication of a short report by Fuzzy Panda.
Unleashing a barrage of accusatory allegations, the short seller, Fuzzy Panda, has aimed its claws at DocGo Inc, accusing the company of improper, fraudulent billing practices, and forgery of patient signatures in medical documents, painting a bleak picture of deceitful cover-ups regarding patient care issues, among other jarring accusations.
According to Fuzzy Panda, former DocGo employees have been accused on multiple occasions of committing Medicare and insurance fraud.
Moreover, the report insinuates that DocGo has stealthily masked these treacherous practices, vehemently denying any wrongdoing, firing whistleblowers, or worse, bribing them into silence.
The unsettling report asserts that while DocGo soared to unprecedented heights of success during FY 2021 and 2022, riding the coattails of the COVID-19 pandemic, their prosperity was severely tested when, in May 2023, they secured a substantial one-year “no-bid” contract to serve NYC migrant asylum seekers.
However, the euphoria surrounding this high-stakes victory was short-lived, as the report exposed a darker underbelly of dubious business practices, triggering a maelstrom of investigations into DocGo’s affairs.
Undeterred by the tempest unleashed by the Fuzzy Panda report, DocGo, in a valiant effort to regain its tarnished image, issued a defiant press release, vehemently repudiating the scathing assessment by Fuzzy Panda Research, branding it as baseless and driven solely by avarice.
The company dauntlessly disclosed its fiscal year 2023 preliminary revenue of $615 million-$625 million, enough to disprove the naysayers, falling only slightly shy of the $619.24 million consensus and perfectly in line with its earlier projections.
Setting its sights even higher, DocGo boldly forecasts its 2024 revenue to soar past $700 million, sending a clear message of intent and resilience, despite market consensus aiming for $760.2 million.
- DocGo swiftly moved to dispel any apprehensions tied to liabilities from the “ABC” liquidation in California, vehemently asserting that these are not the company’s burden and do not accurately reflect the former liabilities of the liquidated entity.
- In robust rebuttal to allegations about its billing practices, DocGo proudly unveils its extensive internal compliance program, including rigorous internal reviews of claims and routine audits by external agencies, marking a staunch defense of its operational integrity.
- The short report implausibly predicts a stark decline in DocGo’s revenue for 2024, citing the expiration of specific contracts with the City of New York. DocGo stands firm, foresightful of an impending upturn in its fiscal fortunes, based on a myriad of lucrative contracts with various municipalities, healthcare systems, and payors in the U.K. and the U.S.
In a bid to assuage investor concerns, Needham, the seasoned analyst, brushes off the timeworn accusations from the short report, affirming investors that these allegations are grossly out-of-date, seemingly imbued with a new sense of confidence in DCGO’s growth prospects for 2024 and maintains a strong Buy rating with a robust price target of $14.
Rooted in resolute determination, DCGO shares ascend an impressive 10.40% to $3.30 on the latest check Thursday, signaling the market’s vote of confidence in the company’s ability to weather the tempest and emerge stronger despite the fierce headwinds unleashed by the Fuzzy Panda report.
