According to the Complaint, Healthcare Services Group, Inc. engages in the management, administrative, and operating services to the housekeeping, laundry, linen, facility maintenance, and dietary service departments in nursing homes, retirement complexes, rehabilitation centers, and hospitals in the United States.

The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations and compliance policies. The Complaint alleges that specifically, Defendants made false and/or misleading statements and/or failed to disclose that Defendants engaged in a scheme to deceive the market and a course of conduct that artificially inflated the price of Healthcare Services securities and operated as a fraud or deceit on Class Period purchasers of Healthcare Services securities by misrepresenting the value of the Company’s business and prospects by overstating its earnings and concealing the significant defects in its internal controls.

On June 17, 2019, the Court issued an Order appointing Lead Plaintiff and Counsel. Lead Plaintiff filed an amended Complaint on September 17. Defendants filed a Motion to Dismiss the amended Complaint on November 18. On April 24, 2020, the Court issued an Order denying Defendants' Motion to Dismiss.

The parties entered into a Stipulation and Agreement of Settlement on June 29, 2021. On January 12, 2022, the Court granted final approval of the Settlement and entered Final Judgment.

On May 23, 2023, the Court issued an Order approving the class distribution plan.