Goldman Scarlato Karon & Penny, P.C. (“GSKP”) is investigating potential claims against Accretive Health, Inc. (NYSE: AH) (“Accretive Health” or the “Company”) to determine whether Accretive Health violated the federal securities laws by misrepresenting the sustainability of its business practices and its compliance with federal health privacy laws, state debt collection laws, state consumer protection laws and customer operating agreements between March 2, 2011 and April 24, 2012, inclusive.
On March 29, 2012, the Company disclosed that the Attorney General of Minnesota had filed a complaint against the Company alleging abuse of, and reckless disregard for, the security of legally-protected patient data. The Company also disclosed the July 2011 theft of a laptop computer containing unencrypted health data relating to 23,500 patients. Separately, the Company disclosed that as part of its efforts to reach a resolution with the Attorney General, the Company would terminate its contract with Fairview Health Services, which provided approximately six percent of the Company’s revenue. In response to this news, Accretive Health’s share price fell from $24.06 per share to $19.60 per share, or 18.54 percent.
On April 24, 2012, the Minnesota Attorney General issued a six-part report describing Accretive Health’s improper and illegal debt collection tactics. That evening, the
New York Times
published an article that described elements of this report, including Accretive Health’s misuse of confidential patient data, and the Company’s use of scripted tactics to misrepresent Company employees as hospital staff to improperly pressure patients for payments. In response to these disclosures, Accretive Health’s share price fell from $18.49 per share to $10.75 per share, or 41.86 percent on April 25, 2012, on extraordinary trading volume.
If you have information that would assist GSKP in its investigation or would like to discuss your legal rights, you may, without obligation or cost to you, e-mail or call GSKP at
or (484) 342-0700, toll free at 888-668-4130. GSKP also encourages anyone with information regarding Accretive Health’s conduct during the period in question to contact the Firm, including whistleblowers, former employees, shareholders, and others.
About Goldman Scarlato Karon & Penny, P.C.
GSKP prosecutes securities fraud, consumer fraud, price-fixing, ERISA class actions, and shareholder derivative actions throughout the U.S. The Firm’s lawyers have recovered hundreds of millions of dollars on behalf of consumers, investors and businesses.