Energy News / Shareholders Foundation, Inc.

Deadline Upcoming in $4 Million Settlement in the American Renal Associates Holdings Inc (NYSE:ARA) Investor Lawsuit

Via: ReleaseWire

Updated 11:45 AM CDT, Wed, June 13,2018

A settlement was reached with the defendants in the lawsuit filed on behalf of certain investors of American Renal Associates Holdings Inc (NYSE: ARA) over alleged securities laws violations and a deadline to submit the settlement claim is upcoming on July 6, 2018 and NYSE: ARA investors should contact the Shareholders Foundation.

San Diego, CA -- (SBWIRE) -- 06/13/2018 -- A deadline is coming up on July 6, 2018 in the settlement reached in the securities class action lawsuit filed on behalf of investors who purchased shares of American Renal Associates Holdings Inc (NYSE: ARA) between April 20, 2016 and August 18, 2016.

Investors who purchased a significant amount of shares of American Renal Associates Holdings Inc (NYSE: ARA) between April 20, 2016 and August 18, 2016, have certain options and should contact the Shareholders Foundation by email at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

The settlement proof of claim form or detailed settlement notice for the settlement in the American Renal Associates Holdings Inc (NYSE: ARA) Investor Securities Class Action Lawsuit can be downloaded at: http://shareholdersfoundation.com/case/american-renal-associates-holdings-inc-nyse-ara-investor-securities-class-action-lawsuit-083120

In order to submit a claim an investor has to submit the claim proof to the class action claim administrator in a timely manner. The deadline to submit the proof with the class administrator is July 6, 2018. The class action administrator for this case is Garden City Group.

The lawsuit was originally filed in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by American Renal Associates Holdings Inc in connection with certain allegedly false and misleading statements made between April 21, 2016 and August 18, 2016.

On or about April 21, 2016, American Renal Associates Holdings Inc completed its IPO, issuing 8.625 million shares of common stock and raising net proceeds of approximately $189.75 million.

According to the complaint the plaintiff alleges on behalf of all persons or entities who purchased or otherwise acquired American Renal Associates Holdings Inc securities pursuant and/or traceable to American Renal Associates Holdings Inc's false and misleading Registration Statement and Prospectus issued in connection with the Company's initial public offering on or about April 21, 2016 (the "IPO" or the "Offering") and/or on the open market between April 21, 2016 and August 18, 2016, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that between defendants made false and/or misleading statements and/or failed to disclose that American Renal Associates Holdings Inc was engaged in a fraudulent scheme to steer patients away from qualified-for Medicare and Medicaid plans into more expensive Affordable Care Act ("ACA") plans to obtain greater reimbursement for the Company's dialysis services, that the foregoing scheme was in violation of federal and state laws, and that as a result of the foregoing, American Renal Associates Holdings Inc's public statements were materially false and misleading at all relevant times.

On July 1, 2016, three insurance companies filed a lawsuit against American Renal Associates Holdings Inc and an affiliated entity in the United States District Court for the Southern District of Florida, alleging that American Renal Associates Holdings Inc was engaged in a "fraudulent and illegal scheme" that involved persuading patients who qualified for Medicare or Medicaid coverage to enroll in commercial healthcare plans and then putting those patients in touch with an American Renal-patronized charity that would pay the patients' insurance premiums in full or in part. As Medicaid and Medicare provide for only predetermined reimbursement rates for dialysis services, the suit alleges that American Renal Associates Holdings Inc would thus receive much larger reimbursements from the ACA insurer as a commercial payor than it would have from Medicare or Medicaid coverage.

On August 18, 2016, the Centers for Medicare and Medicaid Services (the "Agency"), a federal agency within the U.S. Department of Health and Human Services, announced that it had sent warning letters to all dialysis centers that participate in the federal Medicare program. The Agency also stated that it is weighing financial penalties on providers found to have directed people eligible for Medicare into ACA plans instead—as American Renal is alleged to have done.

Shares of American Renal Associates Holdings Inc (NYSE: ARA) declined on August 19, 2016 to as low as $17.69 per share.

American Renal Associates Holdings Inc operates as a dialysis services provider in the United States.

Those who purchased shares of American Renal Associates Holdings Inc (NYSE: ARA) have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com

For more information on this press release visit:
http://www.sbwire.com/press-releases/deadline-upcoming-in-4-million-settlement-in-the-american-renal-associates-holdings-inc-nyseara-investor-lawsuit-993848.htm

Media Relations Contact
Michael Daniels
858-779-1554
Email: Click to Email Michael Daniels
Web: http://www.ShareholdersFoundation.com