Law Office Of Brodsky & Smith, LLC Announces That A Class Action Has Been Filed Against Accretive Health, Inc.
BALA CYNWYD, Pa., May 20, 2013 /PRNewswire/ -- Law Office of Brodsky & Smith, LLC announces that a class action lawsuit has been filed in the United States District Court for the Northern District of Illinois on behalf of all those who purchased or otherwise acquired shares of Accretive Health, Inc. (NYSE: AH) ("Accretive" or the "Company") between May 20, 2010 and February 26, 2013, inclusive (the "Class Period").
The Complaint charges Accretive and other defendants with violations of the Federal Securities Laws. According to the Complaint, Accretive is a leading provider of services that help healthcare providers generate improvements in their operating margins and healthcare quality.
On February 26, 2013, the Company withdrew its financial guidance for fiscal 2012 and disclosed that it was postponing the release of its financial results for the fourth quarter and full year 2012 "because it is evaluating the timing of revenue recognition for its revenue cycle management agreements." Accretive also warned that, if it determined that it had incorrectly recognized revenue for its revenue cycle management agreements, it "may be required to restate prior-period financial statements." On this news, shares of the Company's stock fell $2.54 per share, or almost 21 percent, to close on February 27, 2013 at $9.57 per share, on unusually heavy trading volume. Subsequently, Accretive disclosed that it would restate its historical financial statements for 2010, 2011 and 2012.
The Complaint alleges that, throughout the Class Period, defendants failed to disclose material adverse facts about the Company's financial well-being and prospects. Specifically, defendants failed to disclose or indicate the following: (1) that the Company had improperly recognized revenue under certain managed service contracts; (2) that the Company's financial statements were not prepared in accordance with Generally Accepted Accounting Principles; (3) that the Company lacked adequate internal and financial controls; and (4) that, as a result of the foregoing, the Company's financial statements were materially false and misleading at all relevant times.
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