SAN FRANCISCO--(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.
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