RM LAW, P.C. announces that a class action lawsuit has been filed on behalf of all persons or entities that purchased American Renal Associates Holdings, Inc. (“American Renal” or the “Company”) (NYSE: ARA) between August 10, 2016 and March 27, 2019, inclusive (the “Class Period”).
American Renal shareholders may, no later than May 28, 2019, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of American Renal and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (844) 291-9299 or to sign up online, click here.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934.
The complaint alleges that defendants made materially false and misleading statements to investors during the Class Period and failed to disclose the following: (i) the Company’s financial statements were false and could not be relied upon; and (ii) American Renal had material weaknesses in its internal controls over financial reporting. The complaint further alleges that, as a result of the foregoing, investors purchased American Renal’s common stock at artificially inflated prices during the Class Period and suffered investment losses as a result of the defendants’ conduct.
On March 8, 2019, American Renal disclosed that it was delaying the filing of its fiscal 2019 Annual Report, and that the Company’s Audit Committee was “examining reserve computations and other accounting practices that could have an impact on accounts receivable and revenue for the fiscal year ended December 31, 2018, as well as the previously reported fiscal years….” Following this news, shares of the Company’s stock declined $2.05 per share, or over 16% in value, to close on March 8, 2019 at $10.46 per share, on heavy trading volume.
Subsequently, on March 27, 2019, American Renal disclosed that the Company’s previously issued financial statements for fiscal years 2014 – 2017 “should be restated and should no longer be relied upon,” and that the Company’s Chief Financial Officer had “resigned” effective March 26, 2019. Following this additional news, shares of the Company’s stock declined a an additional $3.69 per share, or 38% in value, to close on March 28, 2019 at $6.01 per share, again on heavy trading volume.
If you are a member of the class, you may, no later than May 28, 2019, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as “lead plaintiff.” Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain RM LAW, P.C. or other counsel of your choice, to serve as your counsel in this action.