BENSALEM, Pa.--(BUSINESS WIRE)--
Law Offices of Howard G. Smith reminds investors of the upcoming November 8, 2016 deadline to file a lead plaintiff motion in the class action lawsuit filed on behalf of investors who purchased or otherwise acquired Quorum Health Corporation (“Quorum” or the “Company”) (NYSE: QHC) securities : (1) pursuant and/or 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 around April 29, 2016; and/or (2) on the open market between May 2, 2016 and August 10, 2016, both dates inclusive, (the “Class Period”). Quorum investors have until November 8, 2016 to file a lead plaintiff motion.
On August 10, 2016, Quorum disclosed financial and operating results for the three and six months ended June 30, 2016. the Company announced revenues of $529.7 million, resulting in a loss from operations of $259.3 million, compared to revenues of $538.4 million and income of $27.5 million in the comparable period last year. On this news the Company’s shares fell sharply in intraday trading on August 11, 2016.
The complaint filed in this lawsuit alleges that throughout the Class Period, defendants made misleading statements: i) that a number of Quorum’s hospitals were underperforming at the time of the spin-off from CHS; (ii) that various other indicators of impairment existed at the time of Quorum’s spin-off from CHS; (iii) that Quorum disregarded and/or failed to advise investors of the foregoing issues; and (iv) as a result of the foregoing, Quorum’s public statements were materially false and misleading at all relevant times.
Then on October 13, 2016 a fund affiliated with Q Investments, L.P. issued a letter to Quorum, encouraging the Company to instigate an independent investigation into the conduct of Quorum as well as the management team of CHS regarding potentially unlawful financial projections connected to the spin-off of Quorum from CHS. In the letter, Q Investments asserts its belief that CHS was aware of or in direct control of important factors that impacted Quorum’s financial position and either did not reveal these costs or willingly misrepresented them to investors.
If you purchased Quorum shares, you may move the Court no later than November 8, 2016 to request appointment as lead plaintiff. To be a member of the class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to [email protected], or visit our website at http://www.howardsmithlaw.com.
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