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INVESTOR ALERT: Law Offices of Howard G. Smith Announces Investigation on Behalf of American Renal Associates Holdings, Inc. Investors

March 28, 2019

BENSALEM, Pa.--(BUSINESS WIRE)--Mar 28, 2019--Law Offices of Howard G. Smith announces an investigation on behalf of American Renal Associates Holdings, Inc. investors (“American Renal” or the “Company”) (NYSE:  ARA ) concerning the Company and its officers’ possible violations of federal securities laws.

On March 8, 2019, American Renal disclosed that in October 2018 the 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 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 by as much as 35% on March 28, 2019, thereby further injuring investors.

If you purchased American Renal securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to  howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

View source version on businesswire.com:https://www.businesswire.com/news/home/20190328005920/en/

CONTACT: Law Offices of Howard G. Smith

Howard G. Smith, Esquire

215-638-4847

888-638-4847

howardsmith@howardsmithlaw.com

www.howardsmithlaw.com

KEYWORD: UNITED STATES NORTH AMERICA PENNSYLVANIA

INDUSTRY KEYWORD: PROFESSIONAL SERVICES LEGAL

SOURCE: Law Offices of Howard G. Smith

Copyright Business Wire 2019.

PUB: 03/28/2019 06:00 PM/DISC: 03/28/2019 06:00 PM

http://www.businesswire.com/news/home/20190328005920/en