SAN DIEGO & FRANKLIN, Tenn.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that a purchaser of Community Health Systems, Inc. (NYSE: CYH) filed a class action complaint c. Community Health Systems owns, leases, and operates general acute care hospitals in the United States.
View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/community-health-systems/
Community Health Systems Accused of Misleading Investors
According to the complaint, Community Health Systems developed an internal system to calculate and record its contractual allowances for third party reimbursements. In 2017, Community Health Systems noted that the adoption of a new accounting standard would impact its provision for bad debts. Subsequent filings affirmed previously reported financial results. However, Community Health Systems misled investors by failing to disclose that it had understated its contractual allowances and provision for bad debts. In February 2018, Community Health Systems released its 2017 annual report and announced a $591 million increase in contractual allowances and bad debt. On this news, Community Health System's stock fell over 17% to close at $5.12 per share on February 28, 2018. The stock has yet to recover and trades significantly below the class period high of $10.32 per share at $2.93 per share as of June 4, 2019.
Community Health Systems Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leo Kandinov at (800) 350-6003, lkandinov@robbinsarroyo.com or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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