Federman & Sherwood Announces the Filing of a Securities Class Action Lawsuit against U.S. Physical Therapy, Inc.
Oklahoma City, OK (April 17, 2017) – On March 31, 2017, a securities class action lawsuit was filed in the United States District Court for the Southern District of New York against U.S. Physical Therapy, Inc. (NYSE: USPH). 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 May 8, 2014 through March 16, 2017. More specifically, this litigation was filed because the Company made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose: (1) that the Company had a material weakness in its internal controls over accounting and financial reporting; (2) that the Company improperly accounted for redeemable non-controlling interests of acquired partnerships in violation of Generally Accepted Accounting Principles; (3) that, as a result, the Company’s financial statements for the years ended December 31, 2015 and 2014, and all quarters within 2014 and 2015, and the first three quarters of 2016 contained material errors; and (4) that, as a result of the foregoing, Defendants’ statements about the Company’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
On March 16, 2017, the Company disclosed that its historical accounting for redeemable non-controlling interests of acquired partnerships was incorrect, and that the error would result in the reporting of a material weakness in internal controls over financial reporting. The Company further disclosed that, because of the error, the Company’s previously issued financial statements for the years ended December 31, 2015 and 2014, and all quarters within 2014 and 2015, and the first three quarters of 2016 should no longer be relied upon, and that the Company would restate certain figures for the affected periods.
On this news, the Company’s common stock fell $3.85 per share, to close at $69.90 per share on March 16, 2017, on unusually heavy trading volume.
Plaintiff seeks to recover damages on behalf of all U.S. Physical Therapy, Inc. 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, May 30, 2017 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 Mon, April 17, 2017
by Nancy Beatty filed under