Shareholder Alert: Robbins Arroyo LLP Announces Complaint Filed Against Community Health Systems, Inc. (CYH)
SAN DIEGO & FRANKLIN, Tenn.
Shareholder rights law firm Robbins Arroyo LLP announces that a purchaser of Community Health Systems, Inc. (NYSE: CYH) filed a derivative complaint against the company's directors for breach of fiduciary duty from February 20, 2017 to the present. Community Health owns, leases, and operates general acute care hospitals.
If you suffered a loss as a result of Community Health's misconduct, click here.
Community Health Systems, Inc. (CYH) Accused of Misleading Shareholders
According to the derivative complaint, Community Health's directors breached their fiduciary duty by misleading investors through a series of SEC reports that over-recorded net revenue and artificially inflated Community Health's stock. On January 1, 2018, Community Health adopted a new accounting standards update ("ASU") that altered the way Community Health recognized revenue, prompting the company to reexamine its previous financial statements. Following the review, Community Health issued a press release on February 27, 2018, revealing that it would be expecting a drop in net revenue for the final quarter and fiscal year 2017 due to previously under-reported provisions for bad accounts and contractual adjustments. On this news, Community Health's stock fell over 17%, to close at $5.12. Today the stock trades at $2.24 and Community Health, its chairman, and its CEO have been named defendants in a securities class action lawsuit, potentially causing further harm to investors.
Community Health Systems, Inc. (CYH) Shareholders Have Legal Options
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Click Here to receive free alerts from Stock Watch when companies engage in wrongdoing.
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