BOSTON, Sept. 20, 2016 /PRNewswire/ -- A class action lawsuit was filed against Quorum Health Corporation (NYSE: QHC) and certain of its officers and directors alleging violations of the federal securities laws. The case is pending in the United States District Court for the Middle District of Tennessee on behalf of investors who purchased or otherwise acquired Quorum securities between May 2, 2016 and August 10, 2016.
On August 10, Quorum disclosed in a press release and SEC filings that it experienced a substantial net loss, as well as an operating loss, for the quarter ended June 30, 2016, its first quarter as an independently traded public company. These losses were linked to over $250 million in impairment charges the Company took in the quarter, including hundreds of millions of dollars in goodwill adjustments. These adjustments represented more than half of Quorum's value, as represented by its market cap as of August 9, 2016. In response to the Company reporting the sizeable loss, Quorum's stock price fell nearly 50%, representing approximately $150 million in lost investor value.
The lawsuit alleges that defendants failed to disclose that Quorum's hospitals were underperforming at the time it was spun off from Community Health Systems, Inc. in April 2016; and that the company failed to adequately inform investors of issues affecting its true value, causing them to overpay for its securities.
If you purchased Quorum securities, you have until November 8, 2016 to file a motion to serve as lead plaintiff. As a member of the class, you may seek to serve as a lead plaintiff or take no action and remain an absent class member. If have questions about the litigation, becoming a lead plaintiff or possess information relevant to this case, please contact attorney Steven Harte at (617) 398-5600, via email at Steven@blockesq.com, or visit www.blockesq.com/quorum. Confidentiality to whistleblowers or others with relevant information is assured.
Block & Leviton represents investors affected by violations of securities laws as well as whistleblowing individuals. The firm's lawyers have collectively been prosecuting securities cases for over 70 years, have recovered billions of dollars for investors and represent some of the nation's largest institutional investors.
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SOURCE Block & Leviton LLP