LOS ANGELES--(BUSINESS WIRE)--The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of Premier, Inc. (“Premier” or “the Company”) (NASDAQ: PINC) for violations of the securities laws.
The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Spruce Point Capital Management, LLC published a report on September 25, 2019, investigating Premier, which states, “due to a unique pre-IPO restructuring agreement, [Premier] is temporarily generating twice the earnings which its business model can sustain organically.” According to the report, contracts between the Company and its “member owner” hospitals were close to expiration, and “with most member owner equity now having vested, hospitals with expiring contracts are far less incented to remain with Premier at sub-market shareback rates.” These hospitals would opt out of renewal, which would “would cause Premier to underperform FY22-23 consensus revenue by >26% and EBITDA by >50%.”
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The class in this case has not yet been certified, and until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.
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