STEVENSON, Md., Sept. 06, 2016 (GLOBE NEWSWIRE) -- The securities litigation law firm of Brower Piven, A Professional Corporation, announces that a class action lawsuit has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of American Renal Associates Holdings, Inc. (NYSE: ARA ) (“ARA” or the “Company”) securities pursuant and/or traceable to the Company’s Registration Statement and Prospectus issued in connection with its initial public offering on or about April 21, 2016 and/or on the open market between April 21, 2016 and August 18, 2016, inclusive (the “Class Period”). Investors who wish to become proactively involved in the litigation have until October 31, 2016 to seek appointment as lead plaintiff.
If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in ARA securities during the Class Period. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. No class has yet been certified in the above action.
The complaint accuses the defendants of violations of the Securities Exchange Act of 1934 and the Securities Act of 1933 by virtue of the defendants’ failure to disclose in the Registration Statement and Prospectus, issued in connection with the Company’s initial public offering on or about April 21, 2016, and during the Class Period that ARA was engaged in a fraudulent scheme to steer patients away from qualified-for Medicare and Medicaid plans into more expensive Affordable Care Act (“ACA”) plans to obtain greater reimbursement for the Company’s dialysis services, which was in violation of federal and state laws.
According to the complaint, following a July 1, 2016 filing of a lawsuit by three insurance companies against ARA and an affiliated entity alleging that ARA was engaged in a “fraudulent and illegal scheme” that involved persuading patients who qualified for Medicare or Medicaid coverage to enroll in commercial healthcare plans and then putting those patients in touch with an ARA-patronized charity that would pay the patients’ insurance premiums in full or in part, and an August 18, 2016 announcement by the Centers for Medicare and Medicaid Services that it had sent warning letters to all dialysis centers that participate in the federal Medicare program that it was weighing financial penalties on providers found to have directed people eligible for Medicare into ACA plans instead, the value of ARA shares declined significantly.
If you have suffered a loss in excess of $100,000 from investment in ARA securities purchased on or after April 21, 2016 and held through the revelation of negative information during and/or at the end of the Class Period and would like to learn more about this lawsuit and your ability to participate as a lead plaintiff, without cost or obligation to you, please visit our website at http://www.browerpiven.com/currentsecuritiescases.html . You may also request more information by contacting Brower Piven either by email at hoffman@browerpiven.com or by telephone at (410) 415-6616. Brower Piven also encourages anyone with information regarding the Company’s conduct during the period in question to contact the firm, including whistleblowers, former employees, shareholders and others.
Attorneys at Brower Piven have extensive experience in litigating securities and other class action cases and have been advocating for the rights of shareholders since the 1980s. If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.
CONTACT: Charles J. Piven Brower Piven, A Professional Corporation 1925 Old Valley Road Stevenson, Maryland 21153 Telephone: 410-415-6616 hoffman@browerpiven.com
