HOUSTON, TX--(Marketwired - Nov 5, 2015) - Nobilis Health Corp. (
The complaint specifically alleges that the Anson family of hedge funds and associated-individuals devised and participated in a "short attack" scheme against the Plaintiff, Nobilis Health Corp., in which the defendants broadcast false and defamatory information about Nobilis in order to drive down the price of Nobilis' publicly traded stock (the "Nobilis Common Stock") so that the defendants could profit from short positions they had taken in Nobilis Common Stock and derivative securities thereof. The key to the scheme was the written attack (the "Article") on Nobilis' business which the defendants prepared and anonymously posted under the pseudonym "The Emperor Has No Clothes" to the website "Seeking Alpha" (www.seekingalpha.com) ("Seeking Alpha"). The Article made numerous statements of purported "fact" about Nobilis' business that were false and defamatory, including allegations that the Company's auditors resigned amid controversy (untrue), CFOs had been shuffled to hide impropriety (untrue), insiders had sold all of their Nobilis Common Stock (untrue), that the Company was hiding poor performance behind acquisitions (untrue), that major insurers would not pay for certain medical procedures billed by Nobilis (untrue), and several other false, defamatory and misleading statements.
Nobilis Common Stock traded at $6.81 at the open of trading on Toronto Stock Exchange on October 9, 2015 -- the day the Article was broadcast. At close that day the price was $4.93. Over the next two weeks Nobilis Common Stock continued trading downward to a low of $2.83, a drop of approximately 60% from price at the open of trading on October 9, 2015. That decline translates to a loss of over $300,000,000 million in market capitalization.
Nobilis believes it is entitled to damages for reputational harm, disruption of its business and affairs, loss of corporate opportunities, costs of investigating and correcting the false and defamatory statements, costs of defending against investor litigation initiated as a result of the false and defamatory information, and other consequential damages resulting from the defendants' scheme and market manipulation.
The case is Nobilis Health Corp. v. Sunny Puri, M5V Advisors, Inc (c.o.b. as Anson Group Canada), Admiralty Advisors, LLC, Frigate Ventures, LP, Anson Investments LP, Anson Capital, LC, Anson Investments Master Fund, LP, AIMF, GP, Anson Catalyst Master Fund, LP, ACF GP, and John Does 1 through 20, Court File No. CV-15-11162-0000, Ontario Superior Court of Justice. Nobilis management is in discussions with US-based counsel regarding the Company's legal recourse against parties located in the United States.
About Nobilis Health Corp.
Nobilis utilizes innovative direct-to-patient marketing focused on a specified set of procedures that are performed at our centers by local physicians. Currently, Nobilis owns and manages four surgical hospitals and five ASCs, partners with an additional 28 facilities throughout the country, and markets six independent brands.
Forward Looking Statements
This news release may contain forward-looking statements (within the meaning of applicable securities laws) and financial outlooks relating to the business of Nobilis Health Corp. (the "Company") and the environment in which it operates. Forward-looking statements are identified by words such as "believe", "anticipate", "expect", "intend", "plan", "will", "may" and other similar expressions and may discuss future expectations, contain projections of future results of operations or of financial condition, or state other forward-looking information. These statements are based on the Company's expectations, estimates, forecasts and projections and while the Company considers these to be reasonable based on information currently available, they may prove to be incorrect. They are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. These risks and uncertainties are discussed in the Company's regulatory filings available on the Company's web site at www.NobilisHealth.com, www.Sedar.com, and www.sec.gov in the risk factors described in the Company's Form 10-K for the fiscal year ended December 31, 2014, filed on April 2, 2015. There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made. Other than as required by law, the Company undertakes no obligation to publicly update any such statement or to reflect new information or the occurrence of future events or circumstances.