NEW YORK--(BUSINESS WIRE)--Bragar Eagel & Squire, P.C. announces that a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of all persons or entities who purchased or otherwise acquired U.S. Physical Therapy, Inc. (NYSE: USPH) securities between May 8, 2014 and March 16, 2017 (the “Class Period”). Investors have until May 30, 2017 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The Complaint alleges that throughout the Class Period, Defendants failed to disclose: (1) that the Company had a material weakness in its internal controls over accounting and financial reporting; (2) that the Company improperly accounted for redeemable non-controlling interests of acquired partnerships in violation of Generally Accepted Accounting Principles; and (3) that, as a result, the Company’s financial statements for the years ended December 31, 2014 and 2015, all quarters within 2014 and 2015, and the first three quarters of 2016 contained material errors. As a result of the foregoing, Defendants’ statements about USPH’s business, operations, and prospects were false and misleading and/or lacked a reasonable basis throughout the Class Period.
On March 16, 2017, the Company disclosed that its historical accounting for redeemable non-controlling interests of acquired partnerships was incorrect and that the error would result in the reporting of a material weakness in internal controls over financial reporting. The Company further disclosed that because of the error, the Company’s previously issued financial statements for the years ended December 31, 2014 and 2015, all quarters within 2014 and 2015, and the first three quarters of 2016 should no longer be relied upon and that the Company would restate certain figures for the affected periods.
Following this news, USPH shares dropped $10.75 per share over a six-day period, or over 14.5%, to close at $63.00 per share on March 23, 2017.
If you purchased or otherwise acquired USPH securities during the Class Period and suffered a loss or continue to hold shares purchased prior to the Class Period, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker, Esq. by email at firstname.lastname@example.org, or telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
Bragar Eagel & Squire, P.C. is a New York-based law firm concentrating in commercial and securities litigation. For additional information concerning the USPh lawsuit, please go to www.bespc.com/usph. For additional information about Bragar Eagel & Squire, P.C., please go to www.bespc.com.