NEW YORK, Sept. 21, 2016 (GLOBE NEWSWIRE) -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC notifies investors that a securities class action has been filed against Quorum Health Corporation (“Quorum” or the “Company”) (NYSE: QHC ) and certain of its officers, in the United States District, Middle District of Tennessee. This class action is on behalf of a class consisting of all persons who purchased or acquired Quorum securities: (1) pursuant and/or traceable to Quorum’s false and misleading Registration Statement issued in connection with the Company’s spinoff from Community Health Systems, Inc. (“CHS”) effective on or about April 29, 2016; and/or (2) on the open market between May 2, 2016 and August 10, 2016, both dates inclusive.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the “Exchange Act”).
Quorum Health Corporation is an independent operator and manager of hospitals and outpatient services in 16 states throughout the United States. Quorum was spun off from Community Health Services, effective April 29, 2016. Through the spinoff’s terms, CHS stockholders who held CHS common stock as of April 22, 2016, received one share of Quorum common stock for every four shares of CHS common stock, in addition to cash for any fractional shares. CHS’s investors owned all of the outstanding common stock of Quorum by the end of the spinoff.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) several of Quorum’s hospitals were underperforming at the time of the spin-off from CHS; (2) there were numerous other signs of deficiency during Quorum’s spin-off; (3) Quorum omitted and/or failed to inform investors of the above-mentioned issues; and (4) consequently, Quorum’s public statements were materially false and misleading at all relevant times.
On May 11, 2016, Quorum stated its 2016 guidance revenues ranging between $2.2 billion to $2.3 billion. On August 10, 2016, Quorum filed a Quarterly Report on Form 10-Q with the SEC announcing its financial and operating results for the three months ended June 30, 2016 (the “Q2 2016 10-Q”). Quorum said it had a damage of $250.4 million and then decreased its 2016 guidance revenues ranging from $2.15 billion to $2.20 billion. Defendants blamed the large operating loss on the $250.4 million in impairment charges Quorum had taken in the quarter, including $45.4 million to reduce certain long-lived asset values in property, equipment and software; $5 million in goodwill based on management’s decision to divest certain hospitals; and $200 million related to the carryover allocation of goodwill at the time of the spin-off from CHS. Following this news, Quorum’s stock dropped $4.99 per share, or 49.8%, to close at $5.03 on August 11, 2016.
No Class has yet been certified in the above action. To discuss this action, or for any questions, please visit the firm’s site: http://www.bgandg.com/qhc or contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484 or via email info@bgandg.com . Those who inquire by e-mail are encouraged to include their mailing address and telephone number. If you suffered a loss in Quorum, you have until November 8, 2016 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm’s expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact: Bronstein, Gewirtz & Grossman, LLC Peretz Bronstein or Yael Hurwitz 212-697-6484 | info@bgandg.com
