SAN DIEGO & MADISON HEIGHTS, Mich.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that a class action complaint was filed against InfuSystem Holdings, Inc. (NYSE MKT: INFU) in the U.S. District Court for the Central District of California. The complaint is brought on behalf of all purchasers of InfuSystem securities between May 12, 2015 and November 7, 2016, for alleged violations of the Securities Exchange Act of 1934 by InfuSystem's officers and directors. InfuSystem, through its subsidiaries, provides infusion pumps and related products and services in the United States and Canada.
View this information on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/shareholders-rights-blog/infusystem-holdings-inc
InfuSystem Accused of Overstating Revenues in Its Financial Statements
According to the complaint, InfuSystem submitted several filings with the U.S. Securities and Exchange Commission attesting to the accuracy of the financial statements, effectiveness of internal controls, and that all fraud was disclosed. However, the complaint alleges that InfuSystem officials failed to disclose that: (1) the company lacked effective internal control over financial reporting; (2) the company's financial statements dating back to the beginning of 2015 overstated the estimated accounts receivable collections, which in turn overstated revenues and pre-tax income by a corresponding amount; and (3) the company's financial statements dating back to the beginning of 2015 could no longer be relied upon.
On November 7, 2016, InfuSystem revealed that certain of its financial statements should not be relied upon and that the Audit Committee believes that material adjustments to the financial statements are required. The company discovered that it had been applying an incorrect cash collection percentage, which resulted in an overstatement of historical cash collection percentages, which was then used to estimate future cash collections relative to an outstanding accounts receivable balance. The company further noted that it would seek to extend the time required to file its quarterly report on Form 10-Q for the fiscal quarter and nine months ended September 30, 2016, but that there can be no assurance that it would be able to file such report within that time period. On this news, InfuSystem stock fell $1.00 per share, or over 38%, to close at $1.60 per share on November 7, 2016.
InfuSystem Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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