Company: Healthcare Services Group, Inc.
Class Period: April 11, 2017 — March 4, 2019
Court: U.S.D.C. – Eastern District of Pennsylvania
A shareholder class action lawsuit has been filed against Healthcare Services Group, Inc. (“Healthcare Services”) on behalf of investors who purchased shares of the Company’s stock between April 11, 2017 and March 4, 2019 (the “Class Period”).
The complaint alleges that the defendants made false and misleading statements and/or failed to disclose material adverse information to investors during the Class Period concerning the Company’s business, operations and prospects. Specifically, the defendants failed to disclose or indicate that: (i) the Company had been accused of strategically rounding quarterly earnings per share and therefore, investors could not rely upon the Company’s track record without conducting a thorough investigation into the allegations; (ii) the SEC had written to the Company in November 2017 to inquire into the Company’s earnings per share rounding practices; and (iii) the SEC delivered a subpoena to the Company in March 2018 commanding the Company to produce documents to the SEC in connection with how it calculated earnings per share.
On March 4, 2019, Healthcare Services disclosed, among other things, that it had “received a letter in November 2017 from the Securities and Exchange Commission (the “SEC”) regarding an inquiry that the SEC is conducting into earnings per share (“EPS”) calculation practices and requesting that the Company voluntarily provide certain information and documents relating to its EPS rounding and reporting practices.” Further, the Company reported that it had “also received a subpoena in March 2018 from the SEC in connection with these matters.” Following these disclosures, shares of the Company’s stock declined $4.96 per share, or over 13%, to close on March 4, 2019 at $32.78 per share, on heavy trading volume.
Healthcare Services stockholders who purchased shares of the Company’s stock before March 4, 2019 are encouraged to contact Kaskela Law LLC at (888) 715 – 1740, or by completing the information form on this page, for additional information about this action and their legal rights and options.