Quorum Health Corporation (NYSE: QHC)
A class action has been commenced in the United States District Court for the Middle District of Tennessee on behalf of purchasers of Quorum Health Corporation (NYSE: QHC) common stock 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”).
The 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, or nearly 50%, to close on August 11, 2016 at $5.03 per share.
If you are a current shareholder 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,, and would like to discuss your options of exercising your rights as a shareholder, please contact us.
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