STEVENSON, Md.--(BUSINESS WIRE)--The securities litigation law firm of Brower Piven, A Professional Corporation, announces that a class action lawsuit has been commenced in the United States District Court for the Middle District of Tennessee on behalf of purchasers of Quorum Health Corporation (NYSE: QHC) (“Quorum” or the “Company”) securities pursuant and/or traceable to Quorum’s false and misleading Registration Statement issued in connection with the Company’s spinoff from Community Health Systems, Inc. (“CHS”) effective on or about April 29, 2016, and/or on the open market between May 2, 2016 and August 10, 2016, inclusive. Investors who wish to become proactively involved in the litigation have until November 8, 2016 to seek appointment as lead plaintiff.
If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in Quorum securities during the Class Period. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. No class has yet been certified in the above action.
The complaint accuses the defendants of violations of the Securities Exchange Act of 1934 and the Securities Act of 1933 by virtue of the defendants’ failure to disclose in the Registration Statement issued in connection with the Company’s spinoff from CHS and during the Class Period that a number of Quorum’s hospitals were underperforming at the time of the spin-off from CHS and various other indicators of impairment existed at the time of Quorum’s spin-off from CHS.
According to the complaint, following an August 10, 2016 press release and Form 10-Q reporting a substantial net loss and an operating loss for the quarter due to impairment charges Quorum had taken in the quarter, including $45.4 million to reduce certain long-lived asset values in property, equipment and software, $5 million in goodwill based on management’s decision to divest certain hospitals, and $200 million related to the carryover allocation of goodwill at the time of the spin-off from CHS, the value of Quorum shares declined significantly.
If you have suffered a loss in excess of $100,000 from investment in Quorum securities purchased on or after May 2, 2016 and held through the revelation of negative information during and/or at the end of the Class Period and would like to learn more about this lawsuit and your ability to participate as a lead plaintiff, without cost or obligation to you, please visit our website at http://www.browerpiven.com/currentsecuritiescases.html. You may also request more information by contacting Brower Piven either by email at firstname.lastname@example.org or by telephone at (410) 415-6616. Brower Piven also encourages anyone with information regarding the Company’s conduct during the period in question to contact the firm, including whistleblowers, former employees, shareholders and others.
Attorneys at Brower Piven have extensive experience in litigating securities and other class action cases and have been advocating for the rights of shareholders since the 1980s. If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.