NEW YORK--(BUSINESS WIRE)--The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the District of New Jersey on behalf of those who acquired American Renal Associates Holdings, Inc. (“American Renal” or the “Company”) (NYSE: ARA) securities during the period from August 10, 2016 through March 27, 2019 (the “Class Period”). Investors have until May 28, 2019 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that American Renal failed to disclose to investors that: (i) issues with American Renal’s accounting process for revenue recognition, collections, and related matters would give rise to an SEC investigation into the same, and increased regulatory scrutiny by the SEC; (ii) American Renal’s financial statements for the fiscal years 2014, 2015, 2016, and 2017 contained in its Annual Reports for the years ended December 31, 2016 and 2017, and its condensed and consolidated financial statements in quarterly reports from 2016 through 2018 were false and could not be relied upon; and (iii) American Renal had material weaknesses in its internal control over financial reporting.
On March 8, 2019, American Renal disclosed that it was delaying the filing of its fiscal 2019 Annual Report and that the Company’s Audit Committee was examining the Company’s accounting practices. On this news, American Renal’s stock price fell $2.05 per share, approximately 16.4%, to close at $10.46 per share on March 8, 2019.
On March 27, 2019, American Renal disclosed that the Company’s previously issued financial statements for fiscal years 2014 through 2017 “should be restated and should no longer be relied upon,” and that the Company’s Chief Financial Officer had resigned effective March 26, 2019. On this news, American Renal’s stock price fell $3.69 per share, approximately 38%, to close at $6.01 per share on March 28, 2019.
If you acquired American Renal securities during the Class Period, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney at 212-371-6600, by email at investigations@kmllp.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, and whistleblower litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney’s website: www.kmllp.com.
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