Shareholder Alert: Robbins Arroyo LLP: Another Complaint Alleges that American Renal Associates Holdings, Inc. (ARA) Misled Shareholders

SAN DIEGO & BEVERLY, Mass.--()--Shareholder rights law firm Robbins Arroyo LLP announces that a purchaser of American Renal Associates Holdings, Inc. (NYSE: ARA) has filed a derivative complaint against the company's officers and directors for breaches of fiduciary duties, unjust enrichment, and waste of corporate assets from August 10, 2016 through the present. American Renal Associates is a dialysis services provider in the United States.

If you suffered a loss as a result of American Renal's misconduct, click here: https://www.robbinsarroyo.com/american-renal-associates-holdings-inc-july-19/

American Renal Accused of Improper Revenue Recognition

According to the complaint, American Renal's officers and directors breached their fiduciary duties by failing to disclose material weaknesses in American Renal's internal control over financial reporting and failing to prepare its financial statements in accordance with generally accepted accounting principles. Despite this knowledge, American Renal and its officers and directors consistently asserted in filings with the U.S. Securities and Exchange Commission ("SEC") that its internal controls over financial reporting remained effective and unchanged. Then, on November 9, 2018, American Renal disclosed in a 10-Q that the SEC requested documents regarding "revenue recognition, collections and related matters." Following the SEC's inquiries, in March 2019, American Renal announced it would delay the filing of its earnings report for fiscal year 2018 due to an internal Audit Committee investigation. Less than a month later, American Renal announced the resignation of its CFO, and the need to restate its financial results for fiscal years 2014 through 2017. Since the news of these events, American Renal’s shares have fallen 38% and currently trade at $7.74.

American Renal Associates Holdings, Inc. (ARA) Shareholders Have Legal Options

Contact us to learn more:
Leo Kandinov
(800) 350-6003
LKandinov@robbinsarroyo.com
Shareholder Information Form

Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Click here to receive free alerts from Stock Watch when companies engage in wrongdoing.

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Contacts

Leo Kandinov
Robbins Arroyo LLP
5040 Shoreham Place
San Diego, CA 92122
LKandinov@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com

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Contacts

Leo Kandinov
Robbins Arroyo LLP
5040 Shoreham Place
San Diego, CA 92122
LKandinov@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com