WAYNE, Pa., Sept. 16, 2016 /PRNewswire/ -- Ryan & Maniskas, LLP announces that a class action lawsuit has been filed in United States District Court for the Middle District of Tennessee on behalf of all persons or entities that purchased the common stock of 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").
Quorum shareholders may, no later than November 8, 2016, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of Quorum and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (877) 316-3218 or to sign up online, visit: www.rmclasslaw.com/cases/qhc.
Quorum owns and operates 38 hospitals and related outpatient service centers in 16 states. Effective April 29, 2016, CHS (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.
If you are a member of the class, you may, no later than November 8, 2016, request that the Court appoint you as lead plaintiff of the class. 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 Ryan & Maniskas, LLP or other counsel of your choice, to serve as your counsel in this action.
For more information regarding this, please contact Ryan & Maniskas, LLP (Richard A. Maniskas, Esquire) toll-free at (877) 316-3218 or by email at firstname.lastname@example.org or visit: www.rmclasslaw.com/cases/qhc. For more information about class action cases in general or to learn more about Ryan & Maniskas, LLP, please visit our website: www.rmclasslaw.com.
Ryan & Maniskas, LLP is a national shareholder litigation firm. Ryan & Maniskas, LLP is devoted to protecting the interests of individual and institutional investors in shareholder actions in state and federal courts nationwide.
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SOURCE Ryan & Maniskas, LLP