LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz continues its investigation of R1 RCM Inc. (“RCM” or the “Company”) (NASDAQ: RCM) on behalf of investors concerning the Company’s possible violations of federal securities laws.
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On October 16, 2023, Jehoshaphat Research published a report alleging, among other things, that RCM’s “revenues and profits are grossly overstated,” that certain reported revenue growth has been “derived from inputs based on assumptions about future collections” which will eventually “collapse,” and that the Company’s revenue is “chronically inflated.” The report also points out that RCM has “recently seen the departures of the CEO, CFO, CCO and CSO,” which “speak to the risks [that] have surfaced.”
On this news, RCM’s stock price fell $1.09, or 8.3%, to close at $12.11 per share on October 16, 2023, thereby injuring investors.
Then, on November 13, 2023, RCM disclosed that it had identified errors related to the accounting for certain acquiree compensation costs and would be restating previously issued financial results for 2021 and 2022, as well as for the first two quarters of 2023.
On this news, RCM’s stock price fell $0.36, or 3.5%, to close at $9.96 per share on November 13, 2023, thereby injuring investors further.
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If you purchased RCM securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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