NEW YORK, Sept. 06, 2016 (GLOBE NEWSWIRE) -- Wolf Popper LLP has filed a class action lawsuit against American Renal Associates Holdings, Inc. (“American Renal”) (NYSE:ARA), and certain of its officers, in the United States District Court for the District of Massachusetts, on behalf of all persons who purchased American Renal securities on the open market and/or pursuant to its April 20, 2016 Registration Statement, during the period April 20, 2016 through August 18, 2016, and were damaged thereby. This action alleges claims for violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
If you are a member of the Class, you may file a motion no later than October 31, 2016 to be appointed lead plaintiff. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Investors who purchased American Renal securities during the Class Period and suffered losses are urged to contact Wolf Popper to discuss their rights.
American Renal is a provider of dialysis services. The Complaint charges that prior to and during the Class Period, the company, in order to obtain higher reimbursement rates, conspired to convince Medicare and Medicaid-eligible patients to enroll in private health insurance plans by referring them to an industry-funded not-for-profit, which would pay for their premiums.
During the Class Period, defendants issued a series of false and misleading statements, including that American Renal maintained robust compliance, that it followed a disciplined approach to payor interaction and billing matters, and that dialysis patients were increasingly opting for private insurers. Defendants failed to disclose that certain of American Renal’s revenue was derived from enticing patients into the private market.
On July 1, 2016, following the close of the market, news broke that three affiliates of the insurer UnitedHealth Group Inc. had sued American Renal for a “fraudulent and illegal scheme,” in violation of various state anti-kickback and insurance fraud statutes for steering dialysis patients into its health plans. On the next day of trading, the company’s shares declined $2.82 per share or nearly 9.88%, to close at $25.71 per share.
On August 18, 2016, following the close of the market, it was revealed that the Centers for Medicare and Medicaid Services had launched a probe into whether dialysis centers were improperly steering patients “to an individual market plan for the purpose of obtaining higher payment rates.” On this news, American Renal shares declined an additional $2.31 per share or nearly 10.44%, to close at $19.81 per share on August 19, 2016.
Wolf Popper has successfully recovered billions of dollars for defrauded investors. The firm’s reputation and expertise have been repeatedly recognized by the courts, which have appointed the firm to major positions in securities litigation. See www.wolfpopper.com.
Attorney Advertising: Prior Results Do Not Guarantee A Similar Outcome.