RADNOR, Pa., Sept. 13, 2016 /PRNewswire/ -- The law firm of Kessler Topaz Meltzer & Check, LLP announces that a shareholder class action lawsuit has been filed against Quorum Health Corporation (NYSE: QHC) ("Quorum" or the "Company) on behalf of investors who (i) received shares of Quorum common stock in connection with the Company's spin-off from Community Health Systems, Inc. ("CHS") and/or (ii) purchased or acquired shares of Quorum common stock between May 2, 2016 and August 10, 2016, inclusive (the "Class Period").
Investors who purchased or acquired Quorum common stock during the Class Period may, no later than November 8, 2016, petition the Court to be appointed as a lead plaintiff representative of the class. For additional information please visit https://www.ktmc.com/new-cases/quorum-health-corporation#join.
Quorum investors who wish to discuss their legal rights or interests with respect to this action are encouraged to contact Kessler Topaz Meltzer & Check (Darren J. Check, Esq., D. Seamus Kaskela, Esq. or Adrienne O. Bell, Esq.) at (888) 299 – 7706 or (610) 667–7706, or via e-mail at firstname.lastname@example.org
Quorum owns and operates 38 hospitals and related outpatient service centers in 16 states. Effective April 29, 2016, CHS (NYSE: CYH) completed a spin-off of Quorum, with CHS shareholders receiving one share of Quorum common stock for every four shares of CHS stock they owned as of April 22, 2016.
The shareholder class action complaint alleges that Quorum and certain of its executive officers made a series of false and misleading statements and/or failed to disclose to investors during the Class Period that: (i) a number of Quorum's hospitals were underperforming at the time of the spin-off from CHS; (ii) various other indicators of impairment existed at the time of Quorum's spin-off from CHS; and (iii) Quorum disregarded and/or failed to advise investors of the foregoing issues. The complaint further alleges that, as a result of the foregoing, Quorum's public statements were materially false and misleading at all relevant times.
On August 10, 2016, Quorum reported its financial and operational results for its first quarter as a publicly traded company. For the quarter ended June 30, 2016, the Company reported a net loss of $245 million, or $(8.63) per share, which it blamed on over $250 million of asset impairment and goodwill charges "relating to the carryover allocation of goodwill" at the time of the spin-off transaction from CHS. Subsequently, Quorum's Chief Financial Officer stated that "there were indications of impairment" at the time of the spin-off and thereafter.
Following this news, shares of the Company's stock declined $4.99 per share, or nearly 50%, to close on August 11, 2016 at $5.03 per share.
Quorum shareholders may, no later than November 8, 2016, petition the Court to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class in the action. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff. For additional information, or to learn how to participate in this action, please visit https://www.ktmc.com/new-cases/quorum-health-corporation#join.
Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check. For more information about Kessler Topaz Meltzer & Check, please visit www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
Darren J. Check, Esq.
D. Seamus Kaskela, Esq.
Adrienne O. Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
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SOURCE Kessler Topaz Meltzer & Check, LLP