SAN DIEGO & BEVERLY, Mass.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP reminds shareholders that purchasers of American Renal Associates Holdings, Inc. (NYSE: ARA) filed a class action complaint against the company for alleged violations of the Securities Exchange Act of 1934 between August 10, 2016 and March 27, 2019. American Renal Associates is a dialysis services provider in the United States.
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American Renal Associates Holdings, Inc. (ARA) Accused of Improper Revenue Recognition
According to the complaint, American Renal consistently asserted in filings with the U.S. Securities and Exchange Commission ("SEC") that its disclosures were accurate. The truth began to emerge on November 9, 2018, when American Renal disclosed in a 10Q that the SEC requested documents regarding "revenue recognition, collections and related matters." On March 8, 2019, before the market opened, American Renal announced it would delay the filing of its earnings report for fiscal year 2018 to examine its accounting practices for 2018 and for previously reported years ranging from 2014 through 2017. On this news, American Renal’s shares fell over 16%. 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. On this news, American Renal’s shares fell almost 40% to close at $6.01 on March 28, 2019, and has yet to recover.
American Renal Associates Holdings, Inc. (ARA) Shareholders Have Legal Options
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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