Nobilis Health Corp.
- Company Name
- Nobilis Health Corp.
- Stock Symbol
- Class Period
- May 8, 2018 to November 15, 2018
- Motion Deadline
- February 12, 2019
- Southern District of Texas
The complaint charges Nobilis and certain of its officers with violations of the Securities Exchange Act of 1934. Nobilis owns and manages specialty surgical hospitals, ambulatory surgery centers, and multi-specialty clinics.
The complaint alleges that throughout the Class Period, defendants made materially false and misleading statements and/or failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, defendants failed to disclose that the Company’s accounts receivable were overstated, which would result in its revenues being overstated and require the Company to make adjustments to its financial statements. As a consequence, the Company would be unable to file its quarterly report in a timely manner, causing it to be out of compliance with NYSE listing requirements. As a result of defendants’ false statements and/or omissions, Nobilis securities traded at artificially inflated prices during the Class Period, with its stock price reaching a high price of $1.40 per share.
On November 9, 2018, Nobilis announced that it was “re-evaluating the Net Realizable Value on its Accounts Receivable and intend[ed] to make a significant adjustment to the carrying value of accounts receivable, primarily on out of network claims greater than 365 days old.” The Company filed for additional time to file its 10-Q for the period ended September 30, 2018 to allow the Company and its auditor to complete their review of Nobilis’s financial statements. On this news, the price of Nobilis shares fell $0.18 per share, or over 25%, to close at $0.52 per share on November 12, 2018. Then on November 15, 2018, Nobilis announced it had received notice from the NYSE that it was no longer in compliance with the NYSE’s continued listing requirements due to its failure to timely file its Form 10-Q. The price of Nobilis shares fell 12% on this news to close at $0.48 per share on November 16, 2018.