BENSALEM, Pa. , May 09, 2019 (GLOBE NEWSWIRE) -- Law Offices of Howard G. Smith reminds investors of the upcoming May 28, 2019 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased 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”).
Investors suffering losses on their Health Insurance Innovations investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.
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.
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 a U.S. Securities and Exchange Commission ("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.
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 if you meet certain legal requirements. To be a member of the class action 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 action. If you wish to learn more about this class action, or if you 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.
Contacts
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
888-638-4847
howardsmith@howardsmithlaw.com
www.howardsmithlaw.com