Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in American Renal Associates Holdings, Inc. (“American Renal” or the “Company”)(NYSE:ARA) of the May 28, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in American Renal stock or options between August 10, 2016 and March 27, 2019 and would like to discuss your legal rights, click here: www.faruqilaw.com/ARA. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to [email protected].
CONTACT: FARUQI & FARUQI, LLP 685 Third Avenue, 26th Floor New York, NY 10017 Attn: Richard Gonnello, Esq. [email protected] Telephone: (877) 247-4292 or (212) 983-9330
The lawsuit has been filed in the U.S. District Court for the District of New Jersey on behalf of all those who purchased American Renal securities between August 10, 2016 and March 27, 2019 (the “Class Period”). The case, Vandevar v. American Renal Associates Holdings, Inc., No. 19-cv-09074 was filed on March 28, 2019.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) issues with American Renals 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 Renals 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, American Renals public statements were materially false and misleading at all relevant times.
On November 9, 2018, American Renal filed a Form 10-Q with the SEC in which the Company disclosed that in October 2018, SEC staff “requested that the Company voluntarily provide documents and information relating to certain revenue recognition, collections and related matters.”
On this news, American Renal’s share price fell from $17.50 per share on November 9, 2018 to a closing price of $16.76 on November 12, 2018: a $0.74 or a 4.23% drop.
On March 8, 2019, before the market opened, American Renal filed a Form NT 10- K with the SEC, announcing it would delay the filing of its earnings report for the fiscal year ended December 31, 2018 as it continues to examine reserve computations and other accounting practices that may have an impact on the companys accounts receivable and revenue for 2018, as well as previously reported fiscal years ranging from 2014 through 2017.
On this news, American Renal’s share price fell from $12.51 per share on March 7, 2019 to a closing price of $10.46 on March 8, 2019: a $2.05 or a 16.39% drop.
Then, on March 27, 2019, after market hours, American Renal announced the resignation of its CFO, and that American Renal would restate its financial results for the fiscal years ended 2014 through 2017.
On this news, American Renal’s share price fell from $9.70 per share on March 27, 2019 to a closing price of $6.01 on March 28, 2019: a $3.69 or a 38.04% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding American Renal’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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FARUQI & FARUQI, LLP
Richard Gonnello, Esq.
(877) 247-4292 or (212) 983-9330