ARA INVESTORS ALERT: Lieff Cabraser Announces Securities Class Action Against American Renal Associates Holdings, Inc.
September 16 2016 - 1:47PM
Business Wire
The law firm of Lieff Cabraser Heimann & Bernstein, LLP
announces that class action litigation has been brought on behalf
of investors who purchased or otherwise acquired the securities of
American Renal Associates Holdings, Inc. (“ARA” or the “Company”)
(NYSE: ARA) between April 20, 2016 and August 18, 2016, inclusive
(the “Class Period”), and/or pursuant or traceable to American
Renal’s false and misleading Registration Statement and Prospectus
issued in connection with the Company’s initial public offering of
common stock (“IPO”) on or about April 21, 2016.
If you purchased or otherwise acquired ARA securities during the
Class Period and/or pursuant or traceable to the IPO, you may move
the Court for appointment as lead plaintiff by no later than
October 31, 2016. A lead plaintiff is a representative party who
acts on behalf of other class members in directing the litigation.
Your share of any recovery in the action will not be affected by
your decision of whether to seek appointment as lead plaintiff. You
may retain Lieff Cabraser, or other attorneys, as your counsel in
the action.
ARA investors who wish to learn more about the litigation and
how to seek appointment as lead plaintiff should click here or
contact Sharon M. Lee of Lieff Cabraser toll-free at
1-800-541-7358.
Background on the ARA Securities Class Litigation
ARA is a Massachusetts-based provider of outpatient dialysis
services, which owns 200 dialysis clinics throughout the country
for patients suffering from chronic kidney failure or end stage
renal disease.
The actions allege that ARA filed a false and misleading
Prospectus as part of its April 22, 2016 IPO Registration
Statement, and subsequently continued those misrepresentations,
when it failed to disclose that ARA illegally steered patients who
qualified for Medicare and Medicaid plans into more expensive
Affordable Care Act (“ACA”) plans to obtain greater reimbursement
for ACA’s services. ARA allegedly funded a third-party charitable
organization (the American Kidney Fund, or “AKA”) to pay private
insurance premiums only for treatments that would benefit ARA, and
predominantly in locations without “in network” dialysis centers,
so that ARA would be paid “out-of-network” rates. Nonetheless,
ARA’s Prospectus maintained that ARA “adhere[d] to stringent
billing, reimbursement, and compliance procedures,” and ACA later
stated that patients “opt[ed for” ACA products, despite illicitly
steering patients to those same services.
On July 2, 2016, three affiliates of the insurer UnitedHealth
Group (“United Health”) filed suit against ARA alleging that it had
engaged in a “fraudulent and illegal scheme” that violated various
state anti-kickback and insurance fraud statutes, in which ARA
convinced patients eligible for Medicare and Medicaid to enroll in
UnitedHealth plans by referring them to AKA, which paid their
insurance premiums. On this news, the price of ARA’s stock price
fell $2.82 per share, or 9.88%, from a previous closing price of
$28.53, to close at $25.71 on the next trading day, July 5, 2016,
on elevated trading volume.
On July 27, 2016, Anthem, Inc. reported that it was reviewing
the reasons behind “higher than expected payments for dialysis
payments during the first half of the year.”
On August 18, 2016, the Centers for Medicare and Medicaid
Services (“CMS”) announced that it had launched an investigation
into whether dialysis centers such as ARA were steering eligible
Medicare and Medicaid recipients to “individual market plan[s]” to
“obtain[] higher rates.” On this news, the price of ARA’s shares
fell $2.31 per share, or 10.44%, from a previous closing price of
$22.21, to close at $19.81 on August 19, 2016, on extremely heavy
trading volume.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San
Francisco, New York, Nashville, and Seattle, is a nationally
recognized law firm committed to advancing the rights of investors
and promoting corporate responsibility.
The National Law Journal has recognized Lieff Cabraser as one of
the nation’s top plaintiffs’ law firms for thirteen years. In
compiling the list, the National Law Journal examines recent
verdicts and settlements and looked for firms “representing the
best qualities of the plaintiffs’ bar and that demonstrated unusual
dedication and creativity.” Best Lawyers and U.S. News have named
Lieff Cabraser as a “Law Firm of the Year” for each year the
publications have given this award to law firms.
For more information about Lieff Cabraser and the firm’s
representation of investors, please visit
http://www.lieffcabraser.com.
This press release may be considered Attorney Advertising in
some jurisdictions under the applicable law and ethical rules.
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version on businesswire.com: http://www.businesswire.com/news/home/20160916005744/en/
Lieff Cabraser Heimann & Bernstein, LLPSharon M. Lee,
1-800-541-7358
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