Form 4: Phreesia SVP David Linetsky Reports Correction of Beneficial Ownership of Shares

David Linetsky, SVP of Life Sciences at Phreesia, Inc., files a Form 4 to correct previously unreported transactions and adjustments to the beneficial ownership of common stock held by his spouse.

Summary

• David Linetsky, SVP of Life Sciences at Phreesia, Inc., reported changes in beneficial ownership of the company's common stock.
• The report includes corrections to previously filed forms due to administrative oversights and errors in reported share amounts.
• Restricted stock units (RSUs) were issued to Linetsky's spouse under the company's 2019 Stock Option and Incentive Plan, vesting quarterly over four years.
• Shares were withheld by the issuer to cover tax obligations related to RSU settlements.
• Some shares were disposed of in non-discretionary transactions to cover tax withholding obligations.
• The reporting person corrected an overstatement of holdings by 116 shares first reflected in a Form 4 filed on September 14, 2022.
• The reporting person corrected an overstatement of holdings by 236 shares first reflected in a Form 4 filed on April 12, 2023.
• Forms 4 filed after December 18, 2023, understated the total common stock holdings of the Reporting Person's spouse by 134 shares.

Sentiment

Score: 5

Explanation: The document is a routine regulatory filing correcting past errors. It doesn't contain overtly positive or negative information about the company's performance, but the need for corrections suggests some internal control weaknesses.

Negatives

• The report indicates previous errors and omissions in reporting beneficial ownership, requiring corrections.
• There were administrative oversights leading to understatements and overstatements of share holdings in previous filings.

Risks

• Continued administrative oversights in reporting could lead to further inaccuracies and potential regulatory scrutiny.
• Fluctuations in Phreesia's stock price could impact the value of RSUs and shares held by the reporting person's spouse.

Industry Context

This filing is a routine disclosure related to insider trading and beneficial ownership, which is common for publicly traded companies. It provides transparency into the transactions of company executives and their impact on stock ownership.

Comparison to Industry Standards

• Form 4 filings are standard practice for publicly traded companies in the US, ensuring transparency of insider transactions.
• Companies like Veeva Systems and Allscripts also have executives who regularly file Form 4s to report changes in their beneficial ownership.
• The reporting requirements are governed by Section 16(a) of the Securities Exchange Act of 1934, ensuring a level playing field across the industry.

Stakeholder Impact

• Shareholders benefit from the increased transparency regarding insider transactions.
• The corrections ensure accurate information is available to investors.

Key Dates

Keywords

Phreesia, Linetsky, beneficial ownership, Form 4, RSUs, stock, reporting, corrections