First Choice Healthcare Solutions, Inc. (OTC: FCHS) Investor Securities Class Action Lawsuit 03/29/2019

If you purchased a significant amount of shares of First Choice Healthcare Solutions, Inc. (OTC: FCHS) between April 1, 2014 and November 14, 2018, and / or if you purchased any OTC: FCHS shares prior to April 2014 and continue to hold any of those shares, you have certain options and for certain investors are short and strict deadlines running. Deadline: May 28, 2019. OTC: FCHS investors should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
First Choice Healthcare Solutions
Case Name: 
First Choice Healthcare Solutions Shareholder Class Action Lawsuit 03/29/2019
Case Status: 
Lawsuit Filed
Affected Securities
OTC: FCHS
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
03/29/2019
Class Period Begin: 
04/01/2014
Class Period End: 
11/14/2018
Court of Filing: 
U.S. District Court for the Middle District of Florida
Deadline To File for Lead: 
05/28/2019
Summary: 

An investor in shares of First Choice Healthcare Solutions, Inc. (OTC: FCHS) filed a lawsuit in the U.S. District Court for the Middle District of Florida over alleged violations of Federal Securities Laws by First Choice Healthcare Solutions, Inc. in connection with certain allegedly false and misleading statements made between April 1, 2014 and November 14, 2018.

Melbourne, FL based First Choice Healthcare Solutions, Inc., through its subsidiaries, provides healthcare services in the United States. First Choice Healthcare Solutions, Inc. reported that its annual Total Revenue rose from $30.38 million in 2016 to $32.95 million in 2017 and that its Net Income of $9.17 million in 2017 declined to Net Loss of $3.88 million in 2018.

On November 14, 2018, the United States Department of Justice (“DOJ”) filed a criminal indictment, and on November 15, 2018, the Securities and Exchange Commission (“SEC”) filed a civil action, against First Choice Healthcare Solutions, Inc‘s then-Chief Executive Officer, President, and Board Chairman Christian Romandetti, Sr. and certain alleged co-conspirators, charging them with securities fraud in connection with the orchestration of a multi-million dollar pump-and-dump scheme. The DOJ indictment and SEC complaint allege that Romandetti and his co-conspirators, through various manipulative practices, defrauded investors in First Choice securities “by artificially controlling the price and volume of traded shares in [First Choice] through, inter alia: (a) artificially generating price movements and trading volume in the shares; and (b) material misrepresentations and omissions in their communications with victim investors about the stock of [First Choice] . . . .”

Shares of First Choice Healthcare Solutions, Inc. (OTC: FCHS) declined from $1.45 per share in February 2018 to as low as $0.22 per share in late 2018.

According to the complaint the plaintiff alleges on behalf of purchasers of First Choice Healthcare Solutions, Inc. (OTC: FCHS) common shares between April 1, 2014 and November 14, 2018, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between April 1, 2014 and November 14, 2018, the defendants made false and/or misleading statements and/or failed to disclose that defendants retained Elite Stock Research, Inc. to falsely promote First Choice securities to investors in order to materially inflate the price of First Choice stock, that Christian Romandetti, Sr., First Choice’s former CEO, President, and Chairman of the Board of Directors, participated in a scheme to materially inflate the price of First Choice securities through an unlawful, paid promotional campaign, in which Romandetti personally profited, that defendants were in violation of First Choice’s internal compliance policies including its Compliance Program, Code of Ethics, and Disclosure Policy, by participating in the pump and dump scheme, and that a primary cause of fluctuations in First Choice’s stock price was the unlawful campaign, in which Romandetti directly participated, that caused the price of First Choice stock to be inflated while at the same time allowed others to dump their First Choice stock for profit. When the true details entered the market, the lawsuit claims that investors suffered damages.