SAN DIEGO & BEVERLY, Mass.--(BUSINESS WIRE)--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
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