Federman & Sherwood Announces the Filing of a Securities Class Action Lawsuit against Quorum Health Corporation
Oklahoma City, OK (September 13, 2016) – On September 9, 2016, a securities class action lawsuit was filed in the United States District Court for the Middle District of Tennessee against Quorum Health Corporation (NYSE: QHC). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is for (1) those investors who received shares of Quorum common stock in connection with the Company’s spin-off from Community Health Systems, Inc. (“CHS”) and/or (2) on the open market between May 2, 2016 and August 10, 2016, both dates inclusive. More specifically, this litigation focuses on whether the Company and its executives violated federal securities laws by failing to disclose that Quorum was suffering from several indicators of impairment, including the underperformance of several of its hospitals, at the time when the Company spun off from Community Health Systems (“CHS”) effective on or about April 29, 2016.
On August 10, 2016, Quorum filed a Quarterly Report on Form 10-Q, decreasing its 2016 guidance revenues due to impairment charges, goodwill loss from divesting certain hospitals, and carryover allocation of goodwill at the time of the spinoff. On this news the Company’s shares fell sharply in intraday trading on August 11, 2016.
Plaintiff seeks to recover damages on behalf of all Quorum Health Corporation shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Tuesday, November 8, 2016 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.
To join this class action, click here to obtain an investor certification. Once complete, please email this form to email@example.com, fax to us at (405) 239-2112 or send by regular mail to Federman & Sherwood, 10205 North Pennsylvania Avenue, Oklahoma City, OK 73120, ATTN: Robin.
Posted on Tue, September 13, 2016
by Robin Hester filed under