Robbins Umeda LLP Announces an Investigation of Accretive Health, Inc
Robbins Umeda LLP is investigating possible breaches of fiduciary duty and other violations of the law by certain officers and directors at Accretive Health, Inc. (NYSE: AH). Concerned shareholders who would like more information about their rights and potential remedies can complete the form below and we will contact you directly. You can also contact attorney Gregory E. Del Gaizo at (800) 350-6003.
Robbins Umeda LLP is investigating whether officers and directors at Accretive Health breached their fiduciary duties to shareholders by causing the company to issue improper public statements regarding Accretive Health’s new Quality and Total Cost of Care service initiative and failing to maintain adequate internal oversight. In particular, Robbins Umeda is investigating whether the company’s fiduciaries failed to disclose that it was violating health privacy laws, state debt collection laws, and state consumer protection laws. On March 29, 2012, Accretive Health announced that, in response to a lawsuit filed by Minnesota’s Attorney General, the company had agreed to no longer collect debts on behalf of Fairview Health Services. On this news, Accretive Health’s stock dropped $4.46 per share to close at $19.60 on March 29, 2012, a one-day decline of nearly 19%.
Subsequently, on April 24, 2012, the Minnesota Attorney General released a report which highlighted allegedly aggressive and improper practices used by Accretive Health, including demanding payment from patients seeking care in emergency rooms, cancer wards, and delivery rooms. As a result of this news, Accretive Health’s stock fell another $7.63 per share to close at $10.86 per share on April 25, 2012, a one-day decline of 41%. Since these facts have emerged, Accretive Health has increasingly become the focus of costly public and legal scrutiny that continues to undermine the company’s prospects and value for shareholders.
Robbins Umeda LLP highlights that Accretive Health shareholders have the option to file a shareholder derivative action to hold those officers and directors accountable for damaging the company. Remedies commonly sought in derivative actions include corporate governance reforms designed to prevent future misconduct, removal of officers or directors whose misconduct injured the corporation, and monetary payments in the form of damages and disgorgement of ill-gotten gains.
Robbins Umeda LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.