NEW YORK, Sept. 9, 2016 /PRNewswire/ -- Pomerantz LLP
announces that a class action lawsuit has been filed against
American Renal Associates Holdings, Inc. ("American Renal" or the
"Company") (NYSE: ARA) and certain of its
officers. The class action, filed in United States
District Court, Southern District of New
York, and docketed under 16-cv-06841, is on behalf of a
class consisting of all persons or entities who purchased or
otherwise acquired American Renal securities: (1) pursuant
and/or traceable to American Renal's false and misleading
Registration Statement and Prospectus issued in connection with the
Company's initial public offering on or about April 21, 2016 (the "IPO" or the "Offering");
and/or (2) on the open market between April
21, 2016 and August 18, 2016,
both dates inclusive (the "Class Period"). 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 "Exchange Act") Securities Act of 1933 (the "Securities
Act").
If you are a shareholder who purchased American Renal securities
during the Class Period, you have until October 31, 2016 to ask the Court to appoint you
as Lead Plaintiff for the class. A copy of the Complaint can
be obtained at www.pomerantzlaw.com. To discuss this action,
contact Robert S. Willoughby at
rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll
free, ext. 9980. Those who inquire by e-mail are encouraged to
include their mailing address, telephone number, and number of
shares purchased.
[Click here to join this class action]
American Renal operates as a dialysis services provider in
the United States focused
exclusively on joint venture partnerships with physicians.
The Company, through its subsidiaries, owns and operates kidney
dialysis facilities for patients suffering from chronic kidney
failure or end stage renal disease ("ESRD"). As of
March 31, 2016, it owned and operated
194 dialysis clinics in 25 states and the District of
Columbia.
On or about 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.
The Complaint alleges that throughout the Class Period,
Defendants made false and/or misleading statements, as well as
failed to disclose material adverse facts about the Company's
business, operations, and prospects. Specifically, Defendants
made false and/or misleading statements and/or 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 ("ACA") plans 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 of the foregoing, American Renal's public
statements were materially false and misleading at all relevant
times.
On July 1, 2016, three insurance
companies filed a lawsuit against American Renal and an affiliated
entity in the United States District Court for the Southern
District of Florida, alleging that
American Renal was engaged in a "fraudulent and illegal scheme"
that involved persuading patients who qualified for Medicare or
Medicaid coverage to enroll in commercial healthcare plans and then
putting those patients in touch with an American Renal-patronized
charity that would pay the patients' insurance premiums in full or
in part. As Medicaid and Medicare provide for only
predetermined reimbursement rates for dialysis services, the suit
alleges that American Renal would thus receive much larger
reimbursements from the ACA insurer as a commercial payor than it
would have from Medicare or Medicaid coverage.
On news of the lawsuit, American Renal's stock price fell
$2.82 per share, or 9.88%, to close
at $25.71 on July 5, 2016, the next trading day.
On August 18, 2016, the Centers
for Medicare and Medicaid Services (the "Agency"), a federal agency
within the U.S. Department of Health and Human Services, announced
that it had sent warning letters to all dialysis centers that
participate in the federal Medicare program. The Agency also
stated that it is weighing financial penalties on providers found
to have directed people eligible for Medicare into ACA plans
instead—as American Renal is alleged to have done.
On this news, American Renal's share price fell $2.31, or 10.44%, to close at $19.81 on August 19,
2016.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los
Angeles, is acknowledged as one of the premier firms in the
areas of corporate, securities, and antitrust class litigation.
Founded by the late Abraham L.
Pomerantz, known as the dean of the class action bar, the
Pomerantz Firm pioneered the field of securities class actions.
Today, more than 80 years later, the Pomerantz Firm continues in
the tradition he established, fighting for the rights of the
victims of securities fraud, breaches of fiduciary duty, and
corporate misconduct. The Firm has recovered numerous
multimillion-dollar damages awards on behalf of class members. See
www.pomerantzlaw.com
CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
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SOURCE Pomerantz LLP