Robbins Arroyo LLP: Healthcare Services Group, Inc. (HCSG) Sued for Misleading Shareholders

Mar 29, 2019 06:12 pm
SAN DIEGO & BENSALEM, Pa. -- 

Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of Healthcare Services Group, Inc. (NASDAQ: HCSG) filed a class action complaint against the company for alleged violations of the Securities and Exchange Act of 1934 between April 11, 2017 and March 4, 2019. Healthcare Services provides services relating to the housekeeping, laundry, linen, facility maintenance, and dietary service departments to nursing homes, retirement complexes, rehab centers, and hospitals in the U.S.

View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/healthcare-services-group/

Healthcare Services Accused of Misrepresenting Its Financials

According to the complaint, after many years of purported growth and strong earnings by Healthcare Services, an article issued on Seeking Alpha on March 22, 2017, suggested that the company engaged in "earnings management" and noted that there is a pattern of "strategic rounding" of quarterly earnings per share for "every single quarter over the past 11 years." According to the article, this aggressive accounting increased the exposure to restatement risk, enforcement proceedings, and securities fraud claims. Subsequently, the company downplayed the article and continued to report positive financial results. The complaint alleges that in November 2017, Healthcare Services received a letter from the SEC regarding an inquiry into earnings per share calculation practices and requesting information and documents relating to its earnings per share rounding and reporting practices. Then, in March 2018, the SEC requested documents explaining the Company's earnings calculations. On March 9, 2019, the company revealed facts surrounding the SEC investigation and that it had authorized outside counsel to conduct an internal investigation into matters related to the SEC investigation. The investigation was purportedly completed by March 18, 2019, but the company has not disclosed the findings.

Healthcare Services 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, [email protected], 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.

Attorney Advertising. Past results do not guarantee a similar outcome.

Leo Kandinov
Robbins Arroyo LLP
[email protected]
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com