BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces an investigation on behalf of American Renal Associates Holdings, Inc. investors (“American Renal” or the “Company”) (NYSE: ARA) concerning the Company and its officers’ possible violations of federal securities laws.
On March 8, 2019, American Renal disclosed that in October 2018 the SEC had requested documents and information regarding revenue recognition, collections, and other related matters. Also, the Company announced that it would delay filing its 2018 annual report while the Audit Committee investigated the Company’s revenue recognition methods and accounting practices.
On this news, shares of American Renal fell $2.05 per share, or over 16%, to close at $10.46 on March 8, 2019, thereby injuring investors.
On March 27, 2019, American Renal announced that certain financial statements would be restated and that its Chief Financial Officer had resigned. The Audit Committee had found that the Company “did not appropriately reconcile its contractual allowance estimates for discounts and price concessions with cash subsequently received in respect of prior period patient claims.” The required adjustments would reduce operating income for fiscal 2017 by at least $10 million and would have a cumulative impact on fiscal years 2014 to 2018 in the range of negative $5 million to positive $5 million. Furthermore, the Company expected to revise related metrics “such as revenue per treatment and days sales outstanding” during the affected financial periods based on the Audit Committee’s ongoing review.
On this news, shares of American Renal fell as much as $1.80, or 18%, in post-market trading, thereby injuring investors further.
If you purchased American Renal securities, have information or 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 Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
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