Cohen Milstein Sellers & Toll PLLC Announces the Investigation of American Renal Associates Holdings, Inc.
September 27 2016 - 5:20PM
Business Wire
Cohen Milstein Sellers & Toll PLLC is conducting an
investigation to determine whether American Renal Associates
Holdings, Inc. (“ARA” or the “Company”) and certain of its officers
and directors made false and misleading statements and/or omissions
in violation of Sections 10(b) and 20(a) of the Securities Exchange
Act of 1934 or committed violations of Sections 11, 12 and 15 of
the Securities Act of 1933.
Class action lawsuits were filed in the U.S. District Court for
the District of Massachusetts and the Southern District of New York
by other law firms on behalf of purchasers of the common stock of
American Renal Associates Holdings, Inc. (NYSE: ARA) between April
20, 2016 and August 18, 2016, inclusive (the “Class Period”),
including those who purchased shares pursuant or traceable to the
Company’s April 20, 2016 initial public offering.
The complaint alleges that ARA and certain of its officers and
directors (“Defendants”) misrepresented and/or failed to disclose
that: (1) ARA was engaged in a fraudulent scheme to steer patients
away from qualified-for Medicare and Medicaid plans into more
expensive Affordable Care Act plans to obtain greater reimbursement
for the Company’s dialysis services; (2) the foregoing scheme was
in violation of federal and state laws; and (3) as a result of the
foregoing, ARA’s public statements were materially false and
misleading at all relevant times.
The Class Period ends on August 18, 2016, the day the Centers
for Medicare and Medicaid Services (“CMS”) issued a Request for
Information (“RFI”) seeking “public comment regarding concerns
about health care providers and provider-affiliated organizations
steering people eligible for or receiving Medicare and/or Medicaid
benefits to an individualized market plan for the purpose of
obtaining higher reimbursement rates.”
On this same day, the CMS reportedly sent a letter to
Medicare-enrolled dialysis facilities which stated, in part:
As we explained in the RFI, we believe there
is potential for harm when a healthcare provider or
provider-affiliated organization steers people eligible for
Medicare and/or Medicaid benefits to enroll in an individual market
plan for the healthcare provider’s financial gain through higher
payment rates without taking into account the needs of these
individuals. . . [I]n the case of an individual actually receiving
Medicare and/or Medicaid benefits, as opposed to potentially
eligible for such benefits, section 1882(d)(3)(i)(II) of the Social
Security [sic] prohibits selling such a person insurance coverage
knowing that it duplicates such Medicare and/or Medicaid
benefits.
The price of ARA shares fell from $22.12 to $19.81 on August 19
in unusually heavy trading.
Cohen Milstein encourages all investors who purchased ARA common
stock pursuant or traceable to the Company’s April 20, 2016 initial
public offering, and/or between April 20, 2016 and August 18, 2016;
or former employees with information concerning this matter to
contact the firm.
If you are an ARA shareholder and would like to discuss your
right to recover for your economic loss, you may, without any cost
or obligation, call Cohen Milstein’s Managing Partner, Steven J.
Toll at (888) 240-0775 or (202) 408-4600, or email him at
stoll@cohenmilstein.com. If you wish to serve as lead plaintiff,
you must move the Court no later than October 31, 2016 to request
appointment. Any member of the proposed class may retain Cohen
Milstein or other attorneys to serve as your counsel in this
action, or you may do nothing and remain an absent class
member.
Cohen Milstein has significant experience in prosecuting
investor class actions and actions involving securities fraud, and
is active in major litigation pending in federal and state courts
throughout the nation. Cohen Milstein has taken a lead role in
numerous important cases on behalf of defrauded investors, and has
been responsible for a number of outstanding recoveries which, in
the aggregate, total over two billion dollars. Prior results do not
guarantee a similar outcome. For more information visit
www.cohenmilstein.com.
If you have any questions about this notice or the action, or
with regard to your rights, please contact either of the
following:
Steven J. Toll, Esq.Ryan MarchbankCohen Milstein Sellers &
Toll PLLC1100 New York Avenue, N.W.Suite 500 EastWashington, D.C.
20005Telephone: (888) 240-0775 or (202) 408-4600Email:
stoll@cohenmilstein.com; rmarchbank@cohenmilstein.com
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version on businesswire.com: http://www.businesswire.com/news/home/20160927006738/en/
Cohen Milstein Sellers & Toll PLLCSteven J. Toll, Esq.,
888-240-0775 or 202-408-4600stoll@cohenmilstein.comorRyan
Marchbank, 888-240-0775 or
202-408-4600rmarchbank@cohenmilstein.com
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