A lawsuit was filed on behalf of investors in Cano Health, Inc. (NYSE:CANO) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 04/13/2022 -- An investor, who purchased shares of Cano Health, Inc. (NYSE: CANO), filed a lawsuit over alleged violations of Federal Securities Laws by Cano Health, Inc. f/k/a Jaws Acquisition Corp.
Investors who purchased shares of Cano Health, Inc. (NYSE: CANO) have certain options and for certain investors are short and strict deadlines running. Deadline: May 17, 2022. NYSE: CANO investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
Miami, FL based Cano Health, Inc. provides primary care medical services to its members in the United States and Puerto Rico. On June 3, 2021, Jaws, a special purpose acquisition company, completed a business combination with Primary Care (ITC) Intermediate Holdings, LLC, and the combined company was renamed Cano Health, Inc (the "Business Combination").
On February 28, 2021, Cano Health, Inc. disclosed that "the Company and its independent auditor, Ernst & Young LLP, identified certain potential non-cash adjustments to account for revenue recognition under accounting standard ASC 606. The adjustments relate to how and when the Company accrues revenue related to Medicare Risk Adjustments". Cano Health, Inc. stated that "it will delay its fourth-quarter and full-year 2021 earnings release, conference call and 2022 guidance updates, previously scheduled for Monday, February 28, 2022".
Shares of Cano Health, Inc. (NYSE: CANO) declined from $7.05 per share on February 15, 2022, to as low as $4.44 per share on February 28, 2022.
The plaintiff claims that between May 18, 2020 and February 25, 2022, the defendants made false and/or misleading statements and/or failed to disclose that Cano Health, Inc. overstated its due diligence efforts and expertise with respect to acquiring target businesses, that 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, that 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, that accordingly, the Company was at an increased risk of failing to timely file one or more of its periodic financial reports, and that as a result of the foregoing, Defendants' public statements were materially false and misleading at all relevant times.
Those who purchased shares of Cano Health, Inc. (NYSE: CANO) have certain options and should contact the Shareholders Foundation.
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