BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed in the United States District Court for the Southern District of Texas, on behalf of investors of Nobilis Health Corp. ("Nobilis" or the "Company") (NYSE:HLTH) who purchased shares between April 2, 2015 and October 8, 2015 inclusive (the “Class Period”) and have been damaged by the recent declines in the Company’s stock price.
On October 9, 2015, seekingalpha.com published a report called “Nobilis: About To Fall From Nobility, Part I, 65%+ Downside” highlighting several concerning issues with the Company including that “insiders have cashed out more than $70 million in the year-to-date period through a combination of share sales and compensation.” The report also pointed out “accounting red flags” including “4 CFO changes in a handful of years, along with recent auditor resignations; potentially overstated revenues; newly acquired acquisitions with Accounts Receivable issues.” The report further identified “questionable marketing, with paid studies touting inappropriate success rates for its medical procedures.”
On this news, the Company’s stock fell $1.41, or more than 27%, to close at $3.82 on October 9, 2015; thereby damaging investors.
The complaint alleges that: (1) Defendants failed to disclose during the Class Period that the Company's claimed success rates for its AccuraScope procedure lacked recognition from any university, medical body, or insurance company; (2) Nobilis overstated its 2014 revenues by as much as $36 million; and (3) as a result of the aforementioned, the Company's 2014 revenue growth rate was only 44%, not 161% as represented by the Company.
Nobilis investors have until December 21, 2015 to move the Court to appoint you as lead plaintiff if you meet certain legal requirements. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at http://www.howardsmithlaw.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.