NEW YORK, March 28, 2019 /CNW/ -- Pomerantz LLP is investigating claims on behalf of investors of American Renal Associates Holdings, Inc. ("American Renal" or the "Company") (NYSE: ARA). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 9980.
The investigation concerns whether American Renal and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On March 8, 2019, American Renal disclosed that it was delaying the filing of its Annual Report for the fiscal year 2018, stating that the Company's Audit Committee was "examining reserve computations and other accounting practices that could have an impact on accounts receivable and revenue for the fiscal year ended December 31, 2018, as well as the previously reported fiscal years". Following this news, American Renal's stock price fell $2.05 per share, or more than 16%, to close at $10.46 per share on March 8, 2019.
Then, on March 27, 2019, post-market, American Renal disclosed that the Company's Board of Directors had "concluded that the Company's previously issued consolidated financial statements and other financial data for the fiscal years ended December 31, 2014, 2015, 2016 and 2017 contained in its Annual Reports on Form 10-K for the years ended December 31, 2016, and 2017, and its condensed consolidated financial statements for the quarters and year-to-date periods ended March 31, June 30 and September 30, 2016; March 31, June 30 and September 30, 2017; and March 31, June 30 and September 30, 2018 contained in its Quarterly Reports on Form 10-Q . . . should be restated and should no longer be relied upon". Specifically, American Renal advised investors that the Company failed to appropriately reconcile its contractual allowance estimates for discounts and price concessions with cash subsequently received in prior period patient claims, and also failed to create a reserve for uncollectible accounts across its payer groups. American Renal further stated that it expected the overall cumulative estimated impact on 2018 operating income and pre-tax income to be negative $13 million to $23 million. On this news, American Renal's stock price fell sharply during intraday trading on March 28, 2019.
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Robert S. Willoughby
SOURCE Pomerantz LLP