WILMINGTON, Del., Sept. 01, 2016 (GLOBE NEWSWIRE) -- Rigrodsky & Long, P.A.:
- Do you, or did you, own shares of American Renal Associates Holdings, Inc. (NYSE:ARA)?
- Did you purchase your shares pursuant and/or traceable to the April 21, 2016 initial public offering, or between April 21, 2016 and August 18, 2016, inclusive?
- Did you lose money in your investment?
Rigrodsky & Long, P.A. announces that a complaint has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities that purchased the common stock of American Renal Associates Holdings, Inc. (“American Renal” or the “Company”) (NYSE:ARA) between April 21, 2016 and August 18, 2016, inclusive, including those investors who acquired American Renal shares pursuant or traceable to its initial public offering (“IPO”) commenced on or about April 21, 2016 (collectively, the “Class Period), alleging violations of the Securities Exchange Act of 1933 and the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).
If you purchased shares of American Renal in the April 21, 2016 offering, or during the period April 21, 2016 and August 18, 2016, inclusive, and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Timothy J. MacFall, Esquire or Peter Allocco of Rigrodsky & Long, P.A., 2 Righter Parkway, Suite 120, Wilmington, DE 19803 at (888) 969-4242; by e-mail to info@rl-legal.com; or at: http://rigrodskylong.com/investigations/american-renal-associates-holdings-inc-ara.
The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements, and omitted materially adverse facts, about the Company’s business, operations and prospects. Specifically, the Complaint alleges that the defendants concealed from the investing public that: (1) American Renal was engaged in a fraudulent scheme to steer patients away from qualified-for Medicare and Medicaid plans into more expensive Affordable Care Act (“ACA”) plans to obtain greater reimbursement for the Company’s dialysis services; (2) the foregoing scheme was in violation of federal and state laws; and (3) as a result of the foregoing, American Renal’s public statements were materially false and misleading at all relevant times. As a result of defendants’ alleged false and misleading statements, the Company’s stock traded at artificially inflated prices during the Class Period.
According to the Complaint, on July 1, 2016, three insurance companies filed a lawsuit against American Renal and an affiliated entity in the United States District Court for the Southern District of Florida, alleging that American Renal was engaged in a “fraudulent and illegal scheme” that involved persuading patients who qualified for Medicare or Medicaid coverage to enroll in commercial healthcare plans and then putting those patients in touch with an American Renal-patronized charity that would pay the patients’ insurance premiums in full or in part. As Medicaid and Medicare provide for only predetermined reimbursement rates for dialysis services, the suit alleges that American Renal would thus receive much larger reimbursements from the ACA insurer as a commercial payor than it would have from Medicare or Medicaid coverage.
Then, on August 18, 2016, the Centers for Medicare and Medicaid Services (the “Agency”), a federal agency within the U.S. Department of Health and Human Services, announced that it had sent warning letters to all dialysis centers that participate in the federal Medicare program. The Agency also stated that it is weighing financial penalties on providers found to have directed people eligible for Medicare into ACA plans instead - as American Renal is alleged to have done.
On this news, shares in American Renal dropped over 10%, closing at $19.81 per share on August 19, 2016, on heavy trading volume.
If you wish to serve as lead plaintiff, you must move the Court no later than October 31, 2016. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Any member of the proposed class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
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