Glancy Prongay & Murray LLP Announces the Filing of a Securities Class Action on Behalf of American Renal Associates Holdings, Inc. Investors
LOS ANGELES--(BUSINESS WIRE)--Apr 2, 2019--Glancy Prongay & Murray LLP (“GPM”), a national investors rights law firm, announces that a class action lawsuit has been filed on behalf of investors that acquired American Renal Associates Holdings, Inc. (“American Renal” or the “Company”) (NYSE: ARA ) securities between August 10, 2016 and March 27, 2019, inclusive (the “Class Period”). American Renal investors have until May 28, 2019 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, at 310-201-9150, Toll-Free at 888-773-9224, or by email to email@example.com, or visit our website at www.glancylaw.com.
On March 8, 2019, American Renal disclosed that in October 2018 the U.S. Securities and Exchange Commission (“SEC”) had requested documents and information regarding revenue recognition, collections, and other related matters. Also, the Company announced that it would delay filing its 2018 annual report while the Audit Committee investigated the Company’s revenue recognition methods and accounting practices.
On this news, shares of American Renal fell $2.05 per share, or more than 16%, to close at $10.46 per share on March 8, 2019, thereby injuring investors.
Then, on March 27, 2019, American Renal announced that certain financial statements would be restated and that its Chief Financial Officer had resigned. The Audit Committee found that the Company “did not appropriately reconcile its contractual allowance estimates for discounts and price concessions with cash subsequently received in respect of prior period patient claims.” The Company also disclosed that the required adjustments would reduce operating income for fiscal 2017 by at least $10 million and would have a cumulative impact on fiscal years 2014 to 2018 in the range of negative $5 million to positive $5 million. Furthermore, the Company stated that it expected to revise related metrics “such as revenue per treatment and days sales outstanding” during the affected financial periods based on the Audit Committee’s ongoing review.
On this news, shares of American Renal fell $3.69 per share, or 38%, to close at $6.01 per share on March 28, 2019, thereby further injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) issues with American Renal’s accounting process for revenue recognition, collections, and related matters would give rise to an SEC investigation into the same, and increased regulatory scrutiny by the SEC; (2) American Renal’s financial statements for the fiscal years 2014, 2015, 2016 and 2017 contained in its Annual Reports for the years ended December 31, 2016 and 2017, and its condensed consolidated financial statements in quarterly reports from 2016 through 2018 were false and could not be relied upon; (3) American Renal had material weaknesses in its internal control over financial reporting; and (4) as a result, defendants’ public statements were materially false and misleading at all relevant times.
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If you purchased shares of American Renal during the Class Period you may move the Court no later than May 28, 2019 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to firstname.lastname@example.org, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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View source version on businesswire.com:https://www.businesswire.com/news/home/20190402006005/en/
CONTACT: Glancy Prongay & Murray LLP, Los Angeles
Lesley Portnoy, 310-201-9150 or 888-773-9224
KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA
INDUSTRY KEYWORD: PROFESSIONAL SERVICES LEGAL
SOURCE: Glancy Prongay & Murray LLP
Copyright Business Wire 2019.
PUB: 04/02/2019 02:46 PM/DISC: 04/02/2019 02:45 PM