Faruqi & Faruqi, LLP, a leading national securities law firm, reminds
investors in American Renal Associates Holdings, Inc. ("American Renal"
or the "Company")(NYSE:ARA) of the May 28, 2019 deadline to seek the
role of lead plaintiff in a federal securities class action that has
been filed against the Company.
If you invested in American Renal stock or options between August 10,
2016 and March 27, 2019 and would like to discuss your legal rights, click
here: www.faruqilaw.com/ARA.
There is no cost or obligation to you.
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.
The lawsuit has been filed in the U.S. District Court for the District
of New Jersey on behalf of all those who purchased American Renal
securities between August 10, 2016 and March 27, 2019 (the "Class
Period"). The case, Vandevar v. American Renal Associates
Holdings, Inc., No. 19-cv-09074 was filed on March 28, 2019.
The lawsuit focuses on whether the Company and its executives violated
federal securities laws by failing to disclose that: (1) issues with
American Renal’s accounting process for revenue recognition,
collections, and related matters would give rise to an SEC investigation
into the same, and increased regulatory scrutiny by the SEC; (2)
American Renal’s financial statements for the fiscal years 2014, 2015,
2016 and 2017 contained in its Annual Reports for the years ended
December 31, 2016 and 2017, and its condensed consolidated financial
statements in quarterly reports from 2016 through 2018 were false and
could not be relied upon; (3) American Renal had material weaknesses in
its internal control over financial reporting; and (4) as a result,
American Renal’s public statements were materially false and misleading
at all relevant times.
On November 9, 2018, American Renal filed a Form 10-Q with the SEC in
which the Company disclosed that in October 2018, SEC staff "requested
that the Company voluntarily provide documents and information relating
to certain revenue recognition, collections and related matters."
On this news, American Renal's share price fell from $17.50 per share on
November 9, 2018 to a closing price of $16.76 on November 12, 2018: a
$0.74 or a 4.23% drop.
On March 8, 2019, before the market opened, American Renal filed a Form
NT 10- K with the SEC, announcing it would delay the filing of its
earnings report for the fiscal year ended December 31, 2018 as it
continues to examine reserve computations and other accounting practices
that may have an impact on the company’s accounts receivable and revenue
for 2018, as well as previously reported fiscal years ranging from 2014
through 2017.
On this news, American Renal's share price fell from $12.51 per share on
March 7, 2019 to a closing price of $10.46 on March 8, 2019: a $2.05 or
a 16.39% drop.
Then, on March 27, 2019, after market hours, American Renal announced
the resignation of its CFO, and that American Renal would restate its
financial results for the fiscal years ended 2014 through 2017.
On this news, American Renal's share price fell from $9.70 per share on
March 27, 2019 to a closing price of $6.01 on March 28, 2019: a $3.69 or
a 38.04% drop.
The court-appointed lead plaintiff is the investor with the largest
financial interest in the relief sought by the class who 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 to serve as a
lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding
American Renal's conduct to contact the firm, including whistleblowers,
former employees, shareholders and others.
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.
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