Case Page

 

Case Status:    SETTLED
On or around 06/10/2016 (Other)

Filing Date: October 28, 2011

According to a complaint filed on October 28, 2011, the defendants violated federal securities laws in connection with allegedly false statements in connection with the Company’s initial public offering. On March 11, 2011, the Company filed its registration statement for an initial public offering.

In a press release dated July 11, 2011, the Company reported disappointing financial results for the second quarter of 2011. According to the Company, these lower than expected results came from a shift from complex surgical cases to less acute medical cases. Following the release, Company shares fell nearly 20%.

On October 1, 2011, Barron’s magazine published an article concerning the Company’s accounting practices surrounding prior business reorganizations. Specifically, the article stated that in an effort to go private in 2006 and the following efforts to take the company public in 2011, the Company did not use the appropriate method to account for the business reorganization. The article also stated the Company chose to use a method no longer accepted by the Financial Accounting Standards Board.

The specific allegation contained in the complaint include: (i) that the Company used improper accounting methods for prior business combinations taking place prior to the IPO in violation of Generally Accepted Accounting Principles; (ii) the company allegedly failed to maintain effective internal controls for its accounting for business combinations; (iii) and the Company failed to disclose trends in revenue growth.

On December 20, 2011, and January 26, 2012, a motion of consolidation were granted by the Court.

On July 13, 2012, an amended consolidated complaint for Violation of the Federal Securities Laws was filed by the plaintiffs against the defendants.

On September 17, 2012, the Court issued an order appointing lead plaintiff and lead counsel in this case.

On May 28, 2013, the Motion to Dismiss filed by the HCA Defendants and joined in by the Underwriter Defendants was GRANTED IN PART and DENIED IN PART. The Motion was GRANTED with respect to Plaintiffs’ allegations that, in regard to its initial public offering, HCA unlawfully failed to disclose (1) an adverse trend in Medicaid Revenue Growth; (2) the potential impact on revenue of proposed Medicaid legislation in Florida and Texas; and (3) an adverse trend in Medicaid Supplemental UPL payments from Texas. In all other respects the Motion is denied.

On September 22, 2014, the Court certified the Lead Plaintiff’s Motion for Class Certification.

On November 4, 2015, various news outlets were reporting that HCA has agreed to a $215 million settlement of this lawsuit.

COMPANY INFORMATION:

Sector: Healthcare
Industry: Healthcare Facilities
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: HCA
Company Market: New York SE
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: M.D. Tennessee
DOCKET #: 11-CV-01033
JUDGE: Hon.Kevin H. Sharp
DATE FILED: 10/28/2011
CLASS PERIOD START: 03/09/2011
CLASS PERIOD END: 10/01/2011
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Barrett Johnston, LLC
    217 Second Avenue, North, Barrett Johnston, LLC, TN 37201-1601
    615/244-2202 ·
  2. Chapin Fitzgerald Sullivan & Bottini LLP
    550 West C Street, Suite 2000, Chapin Fitzgerald Sullivan & Bottini LLP, CA 92101
    619-241-4810 ·
  3. Robbins Geller Rudman & Dowd LLP (San Diego)
    655 West Broadway, Suite 1900, Robbins Geller Rudman & Dowd LLP (San Diego), CA 92101
    619.231.1058 619.231.7423 ·
No Document Title Filing Date
COURT: M.D. Tennessee
DOCKET #: 11-CV-01033
JUDGE: Hon.Kevin H. Sharp
DATE FILED: 07/13/2012
CLASS PERIOD START: 03/09/2011
CLASS PERIOD END: 10/28/2011
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Robbins Geller Rudman & Dowd LLP (San Diego)
    655 West Broadway, Suite 1900, Robbins Geller Rudman & Dowd LLP (San Diego), CA 92101
    619.231.1058 619.231.7423 ·
No Document Title Filing Date