NEW YORK, April 3, 2019 /PRNewswire/ -- Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) is investigating claims on behalf of investors of Healthcare Services Group, Inc. ("Healthcare Services" or the "Company") (NASDAQ: HCSG). Investors who purchased Healthcare Services' securities between April 11, 2017 and March 4, 2019, inclusive (the "Class Period"), may be affected. A complaint has been filed in the United States District Court for the Eastern District of Pennsylvania against the Company and its Chief Executive Officer and President, Theodore Wahl ("Wahl").
On March 4, 2019, in a Form 8-K filed with the Securities and Exchange Commission ("SEC"), the Company disclosed that it had received a letter in November 2017 from the SEC regarding an inquiry that the SEC is conducting into earnings per share ("EPS") calculation practices and requesting that the Company voluntarily provide certain information and documents relating to its EPS rounding and reporting practices. The Company's Form 8-K also disclosed that the Company received a subpoena in March 2018 from the SEC in connection with these matters and that during the fourth quarter of 2018, the Company authorized its outside counsel to conduct an internal investigation, under the direction of the Company's Audit Committee, into matters related to the SEC subpoena. Further, as a result of these circumstances, the Company said it was unable to file its Annual Report on Form 10-K for the year ended December 31, 2018 on a timely basis.
On March 4, 2019, Healthcare Services' stock price fell $4.96 per share, or 13.14%, to close at $32.78 per share.
The complaint alleges, among other things, that the defendants made false and misleading statements throughout the Class Period, including that (1) defendant Wahl either knew or was reckless in not knowing that the Company had been accused of strategically rounding quarterly earnings per share and therefore, investors could not rely upon the Company's track record without conducting a thorough investigation into the allegations, and (2) defendants concealed from investors that the SEC had written to the Company in November 2017 to inquire into the Company's earnings per share rounding practices.
If you are a member of the proposed Class, you may move the court no later than May 21, 2019 to serve as a lead plaintiff for the purported class. You need not seek to become a lead plaintiff in order to share in any possible recovery. If you would like to discuss the complaint or our investigation, please contact us by emailing firstname.lastname@example.org or by calling 800-290-1952.
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Kaplan Fox & Kilsheimer LLP, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com. If you have any questions about this Notice, the action, your rights, or your interests, please contact:
Jeffrey P. Campisi
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
Fax: (212) 687-7714
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
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San Francisco, California 94104
Fax: (415) 772-4707
SOURCE Kaplan Fox & Kilsheimer LLP