NEW YORK, Oct. 21, 2015 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed in the United States District Court for the Southern District of Texas on behalf of all persons or entities that purchased the securities of Nobilis Health Corp. (“Nobilis” or the “Company”) (NYSE:HLTH) between April 2, 2015 through October 8, 2015 (the “Class Period”), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).
The Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company claimed success rates for its AccuraScope procedure lacked recognition from any university, medical body, or insurance company; (2) the Company overstated its 2014 revenues by as much as $36 million; (3) consequently, the Company misrepresented its 2014 revenue growth rate as 161%, when it was actually only 44%; and (4) as a result of the foregoing, the Company’s public statements were materially false and misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
On October 9, 2015, Seeking Alpha published an article entitled “Nobilis: About To Fall From Nobility, Part I, 65%+ Downside.” The Seeking Alpha article described, among other issues, the AccuraScope procedure’s “questionable insurability, unsubstantiated success rates, [and] lack of recognition from” universities, medical bodies, or insurance companies. In addition, the Seeking Alpha article noted significant accounting red flags, and reported that the Company had overstated its 2014 revenues by as much as $36 million. As a result of this news, shares of the Company fell $1.42, or over 27%, to close at $3.82 on October 9, 2015.
If you wish to serve as lead plaintiff, you must move the Court no later than December 21, 2015. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
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