WASHINGTON--(BUSINESS WIRE)--Cohen Milstein Sellers & Toll PLLC is conducting an investigation to determine whether American Renal Associates Holdings, Inc. (“ARA” or the “Company”) and certain of its officers and directors made false and misleading statements and/or omissions in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 or committed violations of Sections 11, 12 and 15 of the Securities Act of 1933.
Class action lawsuits were filed in the U.S. District Court for the District of Massachusetts and the Southern District of New York by other law firms on behalf of purchasers of the common stock of American Renal Associates Holdings, Inc. (NYSE: ARA) between April 20, 2016 and August 18, 2016, inclusive (the “Class Period”), including those who purchased shares pursuant or traceable to the Company’s April 20, 2016 initial public offering.
The complaint alleges that ARA and certain of its officers and directors (“Defendants”) misrepresented and/or failed to disclose that: (1) ARA was engaged in a fraudulent scheme to steer patients away from qualified-for Medicare and Medicaid plans into more expensive Affordable Care Act plans to obtain greater reimbursement for the Company’s dialysis services; (2) the foregoing scheme was in violation of federal and state laws; and (3) as a result of the foregoing, ARA’s public statements were materially false and misleading at all relevant times.
The Class Period ends on August 18, 2016, the day the Centers for Medicare and Medicaid Services (“CMS”) issued a Request for Information (“RFI”) seeking “public comment regarding concerns about health care providers and provider-affiliated organizations steering people eligible for or receiving Medicare and/or Medicaid benefits to an individualized market plan for the purpose of obtaining higher reimbursement rates.”
On this same day, the CMS reportedly sent a letter to Medicare-enrolled dialysis facilities which stated, in part:
As we explained in the RFI, we believe there is potential for harm when a healthcare provider or provider-affiliated organization steers people eligible for Medicare and/or Medicaid benefits to enroll in an individual market plan for the healthcare provider’s financial gain through higher payment rates without taking into account the needs of these individuals. . . [I]n the case of an individual actually receiving Medicare and/or Medicaid benefits, as opposed to potentially eligible for such benefits, section 1882(d)(3)(i)(II) of the Social Security [sic] prohibits selling such a person insurance coverage knowing that it duplicates such Medicare and/or Medicaid benefits.
The price of ARA shares fell from $22.12 to $19.81 on August 19 in unusually heavy trading.
Cohen Milstein encourages all investors who purchased ARA common stock pursuant or traceable to the Company’s April 20, 2016 initial public offering, and/or between April 20, 2016 and August 18, 2016; or former employees with information concerning this matter to contact the firm.
If you are an ARA shareholder and would like to discuss your right to recover for your economic loss, you may, without any cost or obligation, call Cohen Milstein’s Managing Partner, Steven J. Toll at (888) 240-0775 or (202) 408-4600, or email him at firstname.lastname@example.org. If you wish to serve as lead plaintiff, you must move the Court no later than October 31, 2016 to request appointment. Any member of the proposed class may retain Cohen Milstein or other attorneys to serve as your counsel in this action, or you may do nothing and remain an absent class member.
Cohen Milstein has significant experience in prosecuting investor class actions and actions involving securities fraud, and is active in major litigation pending in federal and state courts throughout the nation. Cohen Milstein has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total over two billion dollars. Prior results do not guarantee a similar outcome. For more information visit www.cohenmilstein.com.
If you have any questions about this notice or the action, or with regard to your rights, please contact either of the following:
Steven J. Toll, Esq.
Cohen Milstein Sellers & Toll PLLC
1100 New York Avenue, N.W.
Suite 500 East
Washington, D.C. 20005
Telephone: (888) 240-0775 or (202) 408-4600
Email: email@example.com; firstname.lastname@example.org