Robbins Arroyo LLP: American Renal Associates Holdings, Inc. (ARA) Misled Shareholders According to a Recently Filed Class Ac...
September 06 2016 - 3:57PM
Business Wire
Shareholder rights law firm Robbins Arroyo LLP announces that a
class action complaint was filed against American Renal Associates
Holdings, Inc. (NYSE: ARA) in the U.S. District Court for the
Southern District of New York. The complaint is brought on behalf
of all purchasers of American Renal securities in connection with
the company's initial public offering ("IPO") on April 21, 2016,
and/or on the open market between April 21, 2016 and August 18,
2016, for alleged violations of the Securities Act of 1933 and the
Securities Exchange Act of 1934 by American Renal's officers and
directors. American Renal operates as a dialysis services provider
in the United States focused exclusively on joint venture
partnerships with physicians.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/american-renal-associates-holdings-inc-sept-2016
American Renal Accused of Engaging in Health Insurance
Fraud
According to the complaint, on April 20, 2016, American Renal
filed its final prospectus with the U.S. Securities and Exchange
Commission, stating, "We meet or exceed the core measures
established by [the Centers for Medicare and Medicaid Services
('CMS')] to promote high-quality services in outpatient dialysis
facilities." The company further stated that it believed its strong
performance was driven by a culture of compliance and that the
company was in compliance with the relevant state false claims
laws. On April 21, 2016, American Renal completed its IPO, issuing
8.625 million shares of common stock and raising net proceeds of
approximately $189.75 million. However, the complaint alleges that
American Renal officials failed to disclose that: (i) American
Renal was engaged in a fraudulent scheme to steer patients away
from qualified-for Medicare and Medicaid plans into more expensive
Affordable Care Act plans ("ACA") to obtain greater reimbursement
for the company's dialysis services; (ii) the foregoing scheme was
in violation of federal and state laws; and (iii) as a result,
American Renal's public statements were misleading.
On July 1, 2016, three insurance companies filed a lawsuit
against American Renal alleging violations of Florida's Deceptive
and Unfair Trade Practices Act, as well as fraud, negligent
misrepresentation, and civil conspiracy to obtain funds in
violation of Florida's Patient Brokering Act, Florida's
Anti-Kickback Statute, and Florida's insurance fraud statute. On
news of the lawsuit, American Renal's stock fell almost 10% the
next trading day. On August 18, 2016, CMS announced that it had
sent warning letters to all dialysis centers that participate in
the federal Medicare program and that it is weighing financial
penalties on providers found to have directed people eligible for
Medicare into ACA plans instead. On this news, American Renal stock
fell an additional 10.44%, or $2.31 per share, to close at $19.81
per share on August 19, 2016.
American Renal Shareholders Have Legal Options
Concerned shareholders who would like more information about
their rights and potential remedies can contact attorney Darnell R.
Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the
shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in
shareholder rights law. The firm represents individual and
institutional investors in shareholder derivative and securities
class action lawsuits, and has helped its clients realize more than
$1 billion of value for themselves and the companies in which they
have invested.
Attorney Advertising. Past results do not guarantee a similar
outcome.
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version on businesswire.com: http://www.businesswire.com/news/home/20160906006496/en/
Robbins Arroyo LLPDarnell R. Donahue(619) 525-3990 or Toll Free
(800) 350-6003DDonahue@robbinsarroyo.comwww.robbinsarroyo.com
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