San Diego, CA -- (SBWIRE) -- 05/21/2012 -- Certain directors and officers of Accretive Health, Inc. are under the investigation on behalf of current long term investors in NYSE:AH shares concerning possible breaches of fiduciary duties in connection with certain statements regarding the new Quality and Total Cost of Care service initiative
Investors who are current long term investors in Accretive Health, Inc. (NYSE:AH) shares, have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The investigation by a law firm for current long term investors in NYSE:AH stocks follows a lawsuit filed earlier by shareholders who purchased NYSE:AH shares only between March 2, 2011 and April 24, 2012.
The investigation on behalf of current long term investors in Accretive Health, Inc. (NYSE:AH) stocks, including also those who purchased within or prior to the above stated time frame, concerns whether certain Accretive Health officers and directors are liable in connection with the allegations made in that lawsuit.
According to that complaint filed in the U.S. District Court for the Northern District of Illinois the plaintiff alleges that Accretive Health, Inc. violated the Securities Exchange Act of 1934. Specifically, the plaintiff alleges that defendants issued allegedly materially false and misleading statements regarding Accretive Health’s new Quality and Total Cost of Care service initiative.
The plaintiff says that Accretive Health, Inc. allegedly failed to disclose that it was violating health privacy laws, state debt collection laws and state consumer protection laws and as a result of defendants’ allegedly false statements, NYSE:AH stock traded at artificially inflated prices reaching a high of $30.80 per share on August 1, 2011.
On March 29, 2012, Accretive Health, Inc. filed an amendment to its previously filed annual report. Additionally, on the same day, Accretive Health announced that in an ongoing effort to resolve its outstanding issues with the Minnesota Attorney General, Accretive Health and Fairview Health Services have decided to amend their revenue cycle operations agreement to transition the management of those operations to Fairview leadership. Accretive Health said that it expects the revenue impact of the new revenue cycle operations arrangement with Fairview to be in the range of $62 million to $68 million, or approximately 6% of the company's expected 2012 revenue. Accretive Health said it is working to offset the majority of this revenue shortfall with work from new and existing customers.
Shares of Accretive Health, Inc. (NYSE:AH) fell from $24.06 on March 28, 2012 to as low as $19.85 on March 29, 2012.
Then, on April 24, 2012, the Minnesota Attorney General released a report which highlighted practices used by Accretive Health. On April 25, Minnesota Attorney General Lori Swanson had filed a lawsuit against Accretive Health alleging violations of U.S. and state patient-privacy and debt-collection laws.
Shares of Accretive Health, Inc. (NYSE:AH) fell from $18.06 on April 24, 2012 to as low as $8.46 per share on May 3, 2012 and closed on May 18, 2012 at $11.37 per share.
Those who are current long term investors in Accretive Health, Inc. (NYSE:AH) shares, have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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