Notice is hereby given that a class action lawsuit has been filed on behalf of those who purchased or otherwise acquired Quorum Health Corporation (NYSE: QHC) (“Quorum” or the “Company”) common shares traceable to Quorum’s false and misleading Registration Statement issued in connection with the Company’s spinoff from Community Health Systems, Inc. (“CHS”) effective on or about April 29, 2016; and/or (2) on the open market between May 2, 2016 and August 10, 2016, both dates inclusive.
Quorum investors may receive additional information about the case by clicking the link "Join this Class Action" above.
According to the complaint, Quorum owns and operates 38 hospitals and related outpatient service centers in 16 states. Effective April 29, 2016, Community Health Systems Inc. (NYSE:CYH) (“CHS”) 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 transaction 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 described above, you may no later than November 8, 2016 move the Court to serve as lead plaintiff of the class, if you so choose.
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. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at firstname.lastname@example.org.
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq. or Adrienne Bell, Esq.
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Radnor, PA 19087 1-888-299-7706 (toll free) or 1-610-667-7706
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