American Renal Associates Holdings, Inc. (ARA) Accused of Improper Revenue Recognition
According to the filed class action complaint against the company for alleged violations of the Securities Exchange Act of 1934 between August 10, 2016, and March 27, 2019, American Renal Associates Holdings, Inc. (ARA) consistently asserted in filings with the U.S. Securities and Exchange Commission (“SEC”) that its disclosures were accurate. The truth began to emerge on November 9, 2018, when American Renal disclosed in a 10Q that the SEC requested documents regarding “revenue recognition, collections and related matters.” On March 8, 2019, before the market opened, American Renal announced it would delay the filing of its earnings report for fiscal year 2018 to examine its accounting practices for 2018 and for previously reported years ranging from 2014 through 2017. On this news, American Renal’s shares fell over 16%. Less than a month later, American Renal announced the resignation of its CFO, and the need to restate its financial results for fiscal years 2014 through 2017. On this news, American Renal’s shares fell almost 40% to close at $6.01 on March 28, 2019, and has yet to recover.
American Renal Associates Holdings, Inc. (ARA) Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can send us a message via the Shareholder Information below.