NEW YORK--(BUSINESS WIRE)--The law firm of Kirby McInerney LLP announced today that a class action lawsuit has been filed against American Renal Associates Holdings, Inc. (“American Renal” or the “Company”) (NYSE:ARA) and certain of its officers. The suit was filed in United States District Court, Southern District of New York on behalf of a class consisting of all purchases of American Renal securities: (1) pursuant and/or traceable to the Registration Statement and Prospectus issued in connection with the Company’s initial public offering; and/or (2) on the open market between April 21, 2016 and August 18, 2016 (the “Class Period”). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws. Pursuant to applicable law, investors have until October 31, 2016 to file a motion to be appointed as lead plaintiff in the investor lawsuit.
American Renal, through its subsidiaries, owns and operates kidney dialysis facilities.
The lawsuit alleges that throughout the Class Period, Defendants misrepresented and concealed that American Renal was engaged in an unlawful and fraudulent scheme to steer patients away from qualified-for Medicare and Medicaid plans into more expensive Affordable Care Act (“ACA”) plans to obtain greater reimbursement for the Company’s dialysis services.
On July 1, 2016, three insurance companies filed a lawsuit against American Renal, alleging that American Renal was engaged in a “fraudulent and illegal scheme” that involved persuading patients who qualified for Medicare or Medicaid coverage to enroll in commercial healthcare plans and then putting those patients in touch with an American Renal-patronized charity that would pay the patients’ insurance premiums in full or in part. The suit alleges that American Renal would thus receive much larger reimbursements from the ACA insurer as a commercial payor than it would have from Medicare or Medicaid coverage.
On news of the lawsuit, American Renal’s stock price fell $2.82 per share, from $28.53 to $25.71.
On August 18, 2016, the Centers for Medicare and Medicaid Services, a federal agency within the U.S. Department of Health and Human Services, announced that it had sent warning letters to all dialysis centers that participate in the federal Medicare program, and that it is weighing financial penalties on providers found to have directed people eligible for Medicare into ACA plans instead—as American Renal is alleged to have done.
On this news, American Renal’s share price fell another $2.31, from $22.12 to $19.81.
If you acquired American Renal securities during the Class Period and are interested in learning more about this matter and any rights you might have with respect to these claims, contact Wendy Li at email@example.com, or by telephone at (212) 371-6600. Please bear in mind that some of these rights may be time-sensitive.
Kirby McInerney LLP is a New York-based plaintiffs' law firm concentrating in securities, whistleblower, antitrust and consumer litigation. The firm has specialized in complex litigation, including securities class actions, for several decades. Kirby McInerney LLP has repeatedly demonstrated its expertise in this field, and has been recognized by various courts that have appointed the firm to major positions in consolidated and multi-district litigation. The firm's efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars, and the firm's achievements and quality of service have been chronicled in numerous published decisions. Additional information about the firm or the claims against American Renal Associates Holdings, Inc. can be found at Kirby McInerney LLP's website: http://www.kmllp.com.