RADNOR, Pa., Sept. 13, 2016 /PRNewswire/ -- The law firm
of Kessler Topaz Meltzer & Check, LLP announces that a
shareholder class action lawsuit has been filed against Quorum
Health Corporation (NYSE: QHC) ("Quorum" or the "Company) on behalf
of investors who (i) received shares of Quorum common stock in
connection with the Company's spin-off from Community Health
Systems, Inc. ("CHS") and/or (ii) purchased or acquired shares of
Quorum common stock between May 2,
2016 and August 10,
2016, inclusive (the "Class Period").
Investors who purchased or acquired Quorum common stock
during the Class Period may, no later than November 8, 2016, petition the Court to be
appointed as a lead plaintiff representative of the class.
For additional information please visit
https://www.ktmc.com/new-cases/quorum-health-corporation#join.
Quorum investors who wish to discuss their legal rights or
interests with respect to this action are encouraged to contact
Kessler Topaz Meltzer & Check (Darren
J. Check, Esq., D. Seamus Kaskela,
Esq. or Adrienne O. Bell,
Esq.) at (888) 299 – 7706 or (610) 667–7706, or via e-mail
at info@ktmc.com
Quorum owns and operates 38 hospitals and related outpatient
service centers in 16 states. Effective April 29, 2016, CHS (NYSE:CYH) completed a
spin-off of Quorum, with CHS shareholders receiving one share of
Quorum common stock for every four shares of CHS stock they owned
as of April 22, 2016.
The shareholder class action complaint alleges that Quorum and
certain of its executive officers made a series of false and
misleading statements and/or failed to disclose to investors during
the Class Period that: (i) a number of Quorum's hospitals were
underperforming at the time of the spin-off from CHS; (ii) various
other indicators of impairment existed at the time of Quorum's
spin-off from CHS; and (iii) Quorum disregarded and/or failed to
advise investors of the foregoing issues. The complaint
further alleges that, as a result of the foregoing, Quorum's public
statements were materially false and misleading at all relevant
times.
On August 10, 2016, Quorum
reported its financial and operational results for its first
quarter as a publicly traded company. For the quarter ended
June 30, 2016, the Company reported a
net loss of $245 million, or
$(8.63) per share, which it blamed on
over $250 million of asset impairment
and goodwill charges "relating to the carryover allocation of
goodwill" at the time of the spin-off transaction from CHS.
Subsequently, Quorum's Chief Financial Officer stated that "there
were indications of impairment" at the time of the spin-off and
thereafter.
Following this news, shares of the Company's stock declined
$4.99 per share, or nearly 50%, to
close on August 11, 2016 at
$5.03 per share.
Quorum shareholders may, no later than
November 8, 2016, petition
the Court to be appointed as a lead plaintiff representative of the
class through Kessler Topaz Meltzer & Check, or other counsel,
or may choose to do nothing and remain an absent class
member. A lead plaintiff is a representative party who acts
on behalf of all class members in directing the litigation.
In order to be appointed as a 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 in the action. Your ability to share in
any recovery is not affected by the decision of whether or not to
serve as a lead plaintiff. For additional information, or to
learn how to participate in this action, please visit
https://www.ktmc.com/new-cases/quorum-health-corporation#join.
Kessler Topaz Meltzer & Check prosecutes class actions in
state and federal courts throughout the country. Kessler
Topaz Meltzer & Check is a driving force behind corporate
governance reform, and has recovered billions of dollars on behalf
of institutional and individual investors from the United States and around the world.
The firm represents investors, consumers and whistleblowers
(private citizens who report fraudulent practices against the
government and share in the recovery of government dollars).
The complaint in this action was not filed by Kessler Topaz Meltzer
& Check. For more information about Kessler Topaz Meltzer
& Check, please visit www.ktmc.com.
CONTACT:
Kessler Topaz Meltzer & Check, LLP
Darren J. Check, Esq.
D. Seamus Kaskela, Esq.
Adrienne O. Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
(888) 299-7706
(610) 667-7706
info@ktmc.com
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SOURCE Kessler Topaz Meltzer & Check, LLP