Investors who purchased stock in Accretive Health, Inc. between March 2, 2011 and April 24, 2012.
Potentially, investors who purchased Accretive Health shares during this time period may be able to participate in a class action lawsuit seeking compensation for monetary losses, interest and attorneys' fees.
Accretive Health, Inc.
It has been alleged that Accretive Health made false and misleading statements when it failed to disclose violations of health privacy laws, as well as state debt collection and consumer protection laws.
The deadline to serve as a lead plaintiff in a class action lawsuit against Accretive Health is June 25, 2012.
Note: We are no longer accepting claims regarding Accretive securities suit.
Investors who purchased Accretive Health shares between March 2, 2011 and April 24, 2012 may have legal recourse to seek compensation for damages. Allegations have surfaced that Accretive issued false and misleading information when it failed to disclose that it was violating health privacy laws, state consumer protection laws and state debt collection laws. One class action lawsuit has already been filed in Illinois on behalf of investors of Accretive Health, Inc. and more suits are expected to follow.
Did you purchase stock in Accretive Health between March 2, 2011 and April 24, 2012? If so, you may have legal recourse to seek compensation for damages in light of claims that Accretive misled investors.
Violations of Securities Exchange Act?
According to the class action complaint, Accretive Health violated the Securities Exchange Act of 1934 in connection with certain statements surrounding its new Quality and Total Cost of Care service initiative. Allegedly, between March 2, 2011 and April 24, 2012, Accretive failed to disclose violations of federally mandated privacy laws, consumer protection laws and debt collection laws. As a result of these false statements, the company’s stock traded at artificially inflated prices, peaking at $30.80 per share on Aug. 1, 2011, the suit claims.
In response to a suit lodged by Minnesota’s Attorney General, Accretive issued a press release in March 2012 announcing that it would no longer collect debts on behalf of Fairview Health Services and that as a result, this would negatively impact the company's 2012 revenue by $62 million to $68 million, about 6% of its expected revenue for that year. Shortly thereafter, the Minnesota Attorney General released a report which underlined aggressive tactics used by the company, including demanding payment from patients being treated in cancer wards, delivery rooms and emergency facilities. On this news, the company's stock dropped $7.63 per share on April 25, 2012, representing a single-day decline of 41%.
Can I Participate in a Class Action Against Accretive?
If you purchased Accretive Health Shares between March 2, 2011 and April 24, 2012, you may be able to serve as a lead plaintiff in a class action seeking compensation from Accretive for making allegedly false and misleading statements. The lead plaintiff is a representative that acts on behalf of other members of the class action suit in directing the litigation.