NEW YORK, May 23, 2013 /PRNewswire/ -- Bernstein Liebhard LLP today announced that a securities class action has been commenced in the United States District Court for Northern District of Illinois on behalf of all those who purchased or otherwise acquired shares of Accretive Health, Inc. (NYSE: AH) ("Accretive" or the "Company") between May 20, 2010 and February 26, 2013, inclusive (the "Class Period").
The Complaint charges Accretive and other defendants with violations of the Securities Act of 1933 and Securities Exchange Act of 1934.
Accretive is a leading provider of services that help healthcare providers generate improvements in their operating margins and healthcare quality. On February 26, 2013, the Company withdrew its financial guidance for fiscal 2012 and disclosed that it was postponing the release of its financial results for the fourth quarter and full year 2012 "because it is evaluating the timing of revenue recognition for its revenue cycle management agreements." Accretive also warned that, if it determined that it had incorrectly recognized revenue for its revenue cycle management agreements, it "may be required to restate prior-period financial statements." On this news, shares of the Company's stock fell $2.54 per share, or almost 21 percent, to close on February 27, 2013 at $9.57 per share, on unusually heavy trading volume. Subsequently, Accretive disclosed that it would restate its historical financial statements for 2010, 2011 and 2012.
The Complaint alleges that, throughout the Class Period, defendants failed to disclose material adverse facts about the Company's financial well-being and prospects. Specifically, defendants failed to disclose or indicate the following: (1) the Company had improperly recognized revenue under certain managed service contracts; (2) the Company's financial statements were not prepared in accordance with Generally Accepted Accounting Principles; (3) the Company lacked adequate internal and financial controls; and (4) as a result of the foregoing, the Company's financial statements were materially false and misleading at all relevant times.
Plaintiffs seek to recover damages on behalf of all Class members who invested in Accretive shares during the Class Period. If you invested in Accretive shares as described above during the Class Period, and either lost money on the transaction or still hold the stock, you may wish to join in this action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than July 19, 2013.
A "lead plaintiff" is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed 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. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action.
If you are interested in discussing your rights as an Accretive shareholder and/or have information relating to the matter, please contact Joseph R. Seidman, Jr. at (877) 779-1414 or [email protected].
Bernstein Liebhard LLP has pursued hundreds of securities, consumer and shareholder rights cases and recovered over $3 billion for its clients. It has been named to The National Law Journal's "Plaintiffs' Hot List" in each of the last ten years.
You can obtain a copy of the complaint from the clerk of the court for the United States District Court for the Northern District of Illinois.
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SOURCE Bernstein Liebhard LLP