NEW YORK--(BUSINESS WIRE)--Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, reminds investors that a class action lawsuit has been filed against Cano Health, Inc. (“Cano” or the “Company”) (NYSE: CANO) in the United States District Court for the Southern District of Florida on behalf of all persons and entities who purchased or otherwise acquired Cano securities between May 18, 2020 and February 25, 2022, both dates inclusive (the “Class Period”). Investors have until May 17, 2022 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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On February 28, 2022, Cano Health, Inc., a primary care provider for seniors and underserved communities, announced that it will delay the release of Q4 and full year 2021 financials, previously scheduled for today due to the results of a recent internal audit. The audit found certain non-cash adjustments related to revenue recognition that may impact when and how the company accrues revenue related to Medicare Risk Adjustments.
On this news, Cano’s Class A common stock price fell $0.32 per share, or 6.17%, to close at $4.87 per share on February 28, 2022.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (i) Cano overstated its due diligence efforts and expertise with respect to acquiring target businesses; (ii) accordingly, Cano performed inadequate due diligence into whether the Company, post-Business Combination, could properly account for the timing of revenue recognition as prescribed by ASC 606, particularly with respect to Medicare risk adjustments; (iii) as a result, the Company misstated its capitated revenue, direct patient expense, accounts receivable, net of unpaid service provider costs, and accounts payable and accrued expenses; (iv) accordingly, the Company was at an increased risk of failing to timely file one or more of its periodic financial reports; and (v) as a result, the Company’s public statements were materially false and misleading at all relevant times.
If you purchased or otherwise acquired Cano shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Alexandra Raymond by email at email@example.com, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
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Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.