Accretive Health Inc (NYSE: AH) Investor Securities Class Action Lawsuit 04/26/2012

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Company Name(s): 
Accretive Health
Case Name: 
Accretive Health Shareholder Class Action Lawsuit 04/26/2012
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Approved
Affected Securities
NYSE: AH
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
04/26/2012
Class Period Begin: 
11/10/2010
Class Period End: 
04/27/2012
Court of Filing: 
U.S. District Court for the Northern District of Illinois
Deadline To File for Lead: 
06/25/2012
Date Settled: 
10/04/2013
Settlement Amount: 
$14,000,000
Deadline to Participate in Settlement: 
01/13/2014
Summary: 

April 30, 2014 - The court approved the settlement and ordered the case dismissed with prejudice.

April 30, 2014 - The court held a final settlement hearing.

October 4, 2013 - The court preliminarily approved the settlement.

September 26, 2013 - Parties filed a stipulation of settlement.

December 11, 2012 - The defendants filed a motion to dismiss.

October 12, 2012 - The lead plaintiff filed an amended consolidated complaint on behalf of investors who purchased Accretive Health Inc (NYSE: AH) common shares between November 10, 2010 to April 27, 2012. The lead plaintiff alleges that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between November 10, 2010 to April 27, 2012.

July 3, 2012 - All cases were consolidated.

June 25, 2012 - Lead plaintiff motions were filed.

April 26, 2012 - An investor in shares of Accretive Health Inc (NYSE: AH) filed a lawsuit in the U.S. District Court for the Northern District of Illinois against Accretive Health Inc over alleged violations of Federal Securities Laws.

According to the complaint the plaintiff alleges on behalf of all persons who purchased or otherwise acquired the common stock of Accretive Health Inc between March 2, 2011 and April 24, 2012, that Accretive Health Inc and certain of its officers and/or directors violated the Securities Exchange Act of 1934. Specficially, the plaintiff alleges that defendants issued allegedly materially false and misleading statements regarding Accretive Health Inc’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 January 19, 2012, the State of Minnesota, by its Attorney General, filed a complaint against Accretive Health Inc in the U.S. District Court for the District of Minnesota alleging violations of federal and Minnesota state health privacy laws and regulations, Minnesota debt collection laws and Minnesota consumer protection laws resulting from, among other things, the theft in Minnesota in July 2011 of an employee’s laptop that contained protected health information.

Then on March 29, 2012, Accretive Health Inc (NYSE: AH) filed an amendment to its previously filed annual report. Additionally, on the same day, Accretive Health Inc (NYSE: AH) announced that in an ongoing effort to resolve its outstanding issues with the Minnesota Attorney General, Accretive Health Inc 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 Inc 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 Inc 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 Inc. On April 25, Minnesota Attorney General Lori Swanson had filed a lawsuit against Accretive Health Inc 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 $10.75 on April 25, 2012.