OAKLAND, Calif.--(BUSINESS WIRE)--Shares of R1 RCM Inc. dropped as much as 10% in intraday trading on Monday, October 16, 2023 after Jehoshaphat Research published a report alleging that the company’s revenues and profits are “grossly overstated” by “desperate accounting measures” and “horrific corporate governance.” The report also notes that the company has seen major leadership changes since 2022, including “departures of [its] CEO, CFO, Chief Commercial Officer and Chief Solutions Officer.” Gibbs Law Group is investigating a potential RCM Securities Class Action Lawsuit on behalf of shareholders who lost money in R1 RCM Inc. (NASDAQ: RCM).
To speak with an attorney regarding this class action lawsuit investigation, click here or call (888) 410-2925.
On Monday, October 16, 2023, Jehoshaphat Research published a report alleging that the healthcare technology company R1 RCM Inc. has been posting accounting “fictions,” including reported revenue growth based only on “assumptions” about “future collections,” expenses that have been artificially deflated in order to inflate the Adjusted EBITDA by around 55%, and high levels of debt.
The report also claims RCM’s Board is “conflicted” due to many seats being filled by major customers, allegedly resulting in several transactions that “just happen to benefit board members’ own companies handsomely.”
Following this report, RCM’s stock price dropped 8% on Monday, October 16, 2023, causing significant harm to investors.
What Should RCM Investors Do?
If you invested in RCM, visit our website or contact our securities team directly at (888) 410-2925 to discuss how you may be able to recover your losses. Our investigation concerns whether R1 RCM Inc. has violated federal securities laws by providing false or misleading statements to investors.
About Gibbs Law Group
Gibbs Law Group represents investors throughout the country in securities litigation to correct abusive corporate governance practices, breaches of fiduciary duty, and proxy violations. The firm has recovered over a billion dollars for its clients against some of the world’s largest corporations, and our attorneys have received numerous honors for their work, including “Best Lawyers in America,” “Top Plaintiff Lawyers in California,” “California Lawyer Attorney of the Year,” “Class Action Practice Group of the Year,” “Consumer Protection MVP,” and “Top Women Lawyers in California.”
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