Accretive Health, Inc. (NYSE:AH) Investor Files Class Action Lawsuit Over Alleged Securities Laws Violations
April 26, 2012 (Shareholders Foundation) -- An investor in NYSE:AH shares 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 in connection with certain statements regarding its new Quality and Total Cost of Care service initiative.
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’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 United States 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 (NYSE: AH) 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 $10.75 on April 25, 2012.