NEW YORK, April 11, 2019 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Healthcare Services Group, Inc. ("Healthcare Services Group" or the "Company") (NASDAQ: HCSG) of the May 21, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Healthcare Services Group stock or options between April 11, 2017 and March 4, 2019 and would like to discuss your legal rights, click here: www.faruqilaw.com/HCGS. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to email@example.com.
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The lawsuit has been filed in the U.S. District Court for the Eastern District of Pennsylvania on behalf of all those who purchased Healthcare Services Group securities between April 11, 2017 and March 4, 2019 (the "Class Period"). The case, Koch v. Healthcare Services Group, Inc. et al., No. 19-cv-01227 was filed on March 22, 2019, and has been assigned to Judge Eduardo C. Robreno.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and or misleading statements and/or failing to disclose that: (1) 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; (2) the Securities and Exchange Commission ("SEC") had written to the Company in November 2017 to inquire into the Company's earnings per share ("EPS") rounding practices; (3) the Company concealed from investors the fact that the SEC delivered a subpoena to the Company in March 2018 commanding the Company to produce documents to the SEC in connection with how it calculated earnings per share; and (4) as a result, Defendants' statements about the Company's business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On March 4, 2019, in a Form 8-K filed with the SEC, the Company disclosed that it had received a letter in November 2017 from the SEC regarding an inquiry that the SEC was conducting into EPS calculation practices and requesting that the Company voluntarily provide certain information and documents relating to its EPS rounding and reporting practices. The March 4, 2019 Form 8-K also revealed to investors 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.
On this news, the Company's stock price fell from $37.74 per share on March 1, 2019 to $32.78 per share on March 4, 2019—a $4.96 or 13.14% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Healthcare Services Group conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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