Join The Class Action Suit
Company: Healthcare Services Group, Inc.
Kaskela Law LLC is investigating Healthcare Services Group, Inc. (NASDAQ: HCSG) (“HSG” or the “Company”) on behalf of the Company’s stockholders.
In September 2019, a securities fraud complaint was filed against HSG in federal court on behalf of investors who purchased shares of HSG’s common stock between April 8, 2014 and March 4, 2019. According to the complaint, HSG and certain executive officers “engaged in a long-term pattern of misleading investors into believing that the Company legitimately met or beat Wall Street analysts’ consensus estimates for the Company’s earnings per share (‘EPS’), a key financial metric relied upon by investors as an indicator of a company’s profitability.”
On March 4, 2019, HSG disclosed that it “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. The Company also received a subpoena in March 2018 from the SEC in connection with these matters.” Following this news, shares of HSG’s common stock declined over 13% in value, to close on March 4, 2019 at $32.78 per share, on heavy trading volume.
The investigation seeks to determine whether the members of HSG’s board of directors breached their fiduciary duties in connection with the above alleged misconduct.
Current HSG stockholders who purchased or acquired shares of the Company’s stock prior to April 8, 2014 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq.) at (484) 258 – 1585, or by completing the information form on this page, to discuss this investigation and their legal rights and options.