A lawsuit was filed on behalf of investors in American Renal Associates Holdings Inc (NYSE:ARA) shares over alleged securities laws violations and NYSE:ARA investors should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 09/07/2016 -- An investor, who purchased shares of American Renal Associates Holdings Inc (NYSE:ARA), filed a lawsuit in New York over alleged Securities Laws violations by American Renal Associates Holdings Inc in connection with certain allegedly false and misleading statements.
Investors who purchased shares of American Renal Associates Holdings Inc (NYSE:ARA) have certain options and for certain investors are short and strict deadlines running. Deadline: October 31, 2016. NYSE:ARA investors should contact the Shareholders Foundation at email@example.com or call 858-779-1554.
On or about April 21, 2016, American Renal completed its IPO, issuing 8.625 million shares of common stock and raising net proceeds of approximately $189.75 million.
The plaintiff alleges on behalf of all persons or entities who purchased or otherwise acquired American Renal securities pursuant and/or traceable to American Renal's false and misleading Registration Statement and Prospectus issued in connection with the Company's initial public offering on or about April 21, 2016 (the "IPO" or the "Offering") and/or on the open market between April 21, 2016 and August 18, 2016, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between Defendants made false and/or misleading statements and/or failed to disclose that American Renal Associates Holdings Inc 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, that the foregoing scheme was in violation of federal and state laws, and that as a result of the foregoing, American Renal Associates Holdings' public statements were materially false and misleading at all relevant times.
On July 1, 2016, three insurance companies filed a lawsuit against American Renal Associates Holdings Inc and an affiliated entity in the United States District Court for the Southern District of Florida, alleging that American Renal Associates Holdings Inc 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.
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. Shares of American Renal Associates Holdings Inc (NYSE:ARA) declined on August 19, 2016 to as low as $17.69 per share.
Those who purchased shares of American Renal Associates Holdings Inc have certain options and should contact the Shareholders Foundation.
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