NEW YORK, Sept. 21, 2016 /PRNewswire/ -- Faruqi &
Faruqi, LLP, a leading national securities law firm, reminds
investors in American Renal Associates Holdings, Inc. ("American
Renal Associates" or the "Company") (NYSE:ARA) of the October 31, 2016 deadline to seek the role of
lead plaintiff in a federal securities class action lawsuit filed
against the Company and certain officers.
The lawsuit has been filed in the U.S. District Court for the
Southern District of New York on
behalf of all those who purchased American Renal Associates
securities: (1) pursuant and/or traceable to American Renal
Associates' Initial Public Offering on or about April 21, 2016 (the "IPO"); and/or (2) from
April 21, 2016 through August 18, 2016 (the "Class Period"). The
case, Gelsleichter v. American Renal Associates Holdings, Inc.
et al, No. 1:16-cv-06841 was filed on August 31, 2016, and has been assigned to Judge
Lewis A. Kaplan.
The lawsuit focuses on whether the Company and its executives
violated federal securities laws by making false and/or misleading
statements and/or failed to disclose that: (i) American Renal
Associates 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 scheme
was in violation of federal and state laws; and (iii) as a result,
American Renal's public statements were materially false and
misleading at all relevant times.
Specifically, on July 1, 2016,
three insurance companies filed a lawsuit against American Renal
Associates alleging that the Company 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. As Medicaid and Medicare provide for only
predetermined reimbursement rates for dialysis services, the suit
alleges that American Renal Associates would thus receive much
larger reimbursements from the ACA insurer than it would have from
Medicare or Medicaid coverage.
On this news, the Company's stock price fell from $28.53 per share on July
1, 2016 to a closing price of $25.71 on July 5,
2016 —a $2.82 or a 9.88%
drop.
In addition, on August 18, 2016,
the Centers for Medicare and Medicaid Services (the"Agency")
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, the Company's stock price fell from $22.12 per share on August
18, 2016 to a closing price of $19.81 on August
19, 2016—a $2.31 or a 10.44%
drop.
Request more information now by clicking here:
www.faruqilaw.com/ARA . There is no cost or obligation to
you.
Take Action
If you invested in American Renal Associates stock or options
pursuant to the Company's IPO and/or between April 21, 2016 and August
18, 2016 and would like to discuss your legal rights, visit
www.faruqilaw.com/ARA. 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
rgonnello@faruqilaw.com. Faruqi & Faruqi, LLP also
encourages anyone with information regarding American Renal
Associates' conduct to contact the firm, including whistleblowers,
former employees, shareholders and others.
The court-appointed lead plaintiff is the investor with the
largest financial interest in the relief sought by the class that
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 of whether or not to serve
as a lead plaintiff.
Attorney Advertising. The law firm responsible for this
advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com).
Prior results do not guarantee or predict a similar outcome with
respect to any future matter. We welcome the opportunity to discuss
your particular case. All communications will be treated in a
confidential manner.
FARUQI & FARUQI, LLP
685 Third Avenue, 26th Floor
New York, NY 10017
Attn: Richard Gonnello,
Esq.
rgonnello@faruqilaw.com
Telephone: (877) 247-4292 or (212) 983-9330
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