CHICAGO, May 1, 2012 /PRNewswire/ -- Hagens Berman today announced that it is investigating Accretive Health Inc. (NYSE: AH) ("Accretive Health") following the release of a report by the Minnesota Attorney General questioning certain practices used by the company.
Investors who purchased or otherwise acquired shares of Accretive Health common stock between March 2, 2011 and April 24, 2012 (the "Class Period"), and who suffered losses are encouraged to contact Hagens Berman Partner Reed Kathrein. Mr. Kathrein is leading Hagens Berman's investigation and can be reached at (510) 725-3000. Investors may also contact the firm via email at AH@hbsslaw.com or by visiting www.hb-securities.com/AH.
On Jan. 19, 2012, Minnesota's Attorney General filed a lawsuit alleging that Accretive Health violated privacy laws following the theft of a laptop containing patient data.
On March 29, 2012, the company announced that in an effort to resolve the allegations and underlying issues, it would no longer collect debts for Fairview Health Services. The company announced that this shift would have a revenue impact "in the range of $62 million to $68 million, or approximately 6% of the company's expected 2012 revenue."
Following the announcement, the share price of Accretive Health common stock fell nearly 19 percent.
The stock price fell again on April 25, 2012, this time nearly 41 percent, following the April 24, 2012 release of a report by the Minnesota Attorney General which outlined a number of aggressive practices used by Accretive Health, including stationing debt collectors in emergency rooms.
Hagens Berman's investigation centers around claims that Accretive Health may have failed to disclose material information to investors regarding these allegations during the Class Period. The firm is investigating whether failure to disclose information may have caused the stock price to trade at an artificially high price during the class period.
"We are trying to determine whether Accretive Health knew about violations of privacy laws, but tried to conceal that information from investors," said Mr. Kathrein. "If the company tried to sweep these issues under the rug so as not to damage the share price, investors are entitled to compensation for their losses."
The deadline for investors to move the court for lead plaintiff is June 25, 2012.
Persons with knowledge that may help the investigation are encouraged to contact the firm. The SEC recently finalized new rules as part of its implementation of the whistleblower provisions in the Dodd-Frank Wall Street Reform Bill. The new rules protect whistleblowers from employer retaliation and allow the SEC to reward those who provide information leading to a successful enforcement with up to 30 percent of the recovery.
Hagens Berman Sobol Shapiro LLP is an investor-rights class-action law firm with offices in 10 cities. The firm represents whistleblowers, workers and consumers in complex litigation. More about the law firm and its successes can be found at www.hbsslaw.com. The firm's securities law blog is at www.meaningfuldisclosure.com and its securities website is located at www.hb-securities.com.
Media Contact: Mark Firmani, Firmani + Associates, (206) 443 9357, Mark@firmani.com
SOURCE Hagens Berman Sobol Shapiro LLP