Robbins LLP: HMS Holdings Corporation (HMSY) Misled Shareholders According to a Recently Filed Class Action
Robbins LLP announces that a class action complaint was filed against HMS Holdings Corporation (NASDAQGS: HMSY) (“HMS”) in the U.S. District Court for the District of New Jersey. The complaint is brought on behalf of all purchasers of HMS securities between May 10, 2016 and March 2, 2017, for alleged violations of the Securities Exchange Act of 1934 by HMS’s officers and directors. HMS, through its subsidiaries, operates in the healthcare insurance benefit cost containment market in the United States.
HMS Accused of Implementing Ineffective Controls Over Financial Reporting
According to the complaint, in a series of filings with the U.S. Securities and Exchange Commission (“SEC”), HMS officials attested to the accuracy of the financial statements, the effectiveness of internal controls, and the disclosure of all fraud. However, the complaint alleges that HMS officials failed to disclose that the company lacked effective controls over financial reporting, and as a result, its financial statements were false and misleading.
On March 2, 2017, HMS filed a Form NT 10-K with the SEC stating that it would not be able to timely file its Form 10-K for the year ended December 31, 2016. The company disclosed that it needed more time to complete documentation related to its previously disclosed review of its CMS reserves and related internal controls over financial reporting. HMS further revealed that its auditor identified a material weakness in the company’s internal controls over financial reporting related to the CMS reserves. On this news, HMS’s stock fell $0.47 per share, or over 2.47%, to close at $18.50 per share on March 3, 2017.
HMS Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.