NEW YORK–(BUSINESS WIRE)–Faruqi & Faruqi, LLP, a leading national securities law firm, reminds
investors in Healthcare Services Group, Inc. (“Healthcare Services
Group” or the “Company”) (NASDAQ:HCSG) of the May 21, 2019 deadline to
seek the role of lead plaintiff in a federal securities class action
that has been filed against the Company.
If you invested in Healthcare Services Group stock or options between
April 11, 2017 and March 4, 2019 and would like to discuss your
legal rights, click here: www.faruqilaw.com/HCSG.
There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at
877-247-4292 or at 212-983-9330 or by sending an e-mail to [email protected].
The lawsuit has been filed in the U.S. District Court for the Eastern
District of Pennsylvania on behalf of all those who purchased Healthcare
Services Group securities between April 11, 2017 and March 4, 2019 (the
“Class Period”). The case, Koch v. Healthcare Services Group, Inc. et
al., No. 19-cv-01227 was filed on March 22, 2019, and has been
assigned to Judge Eduardo C. Robreno.
The lawsuit focuses on whether the Company and its executives violated
federal securities laws by making false and/or misleading statements
and/or failing to disclose that: (1) 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; (2) the
Securities and Exchange Commission (“SEC”) had written to the Company in
November 2017 to inquire into the Company’s earnings per share (“EPS”)
rounding practices; (3) the Company concealed from investors the fact
that 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; and (4) as a result,
Defendants’ statements about the Company’s business, operations and
prospects were materially false and misleading and/or lacked a
reasonable basis at all relevant times.
On March 4, 2019, in a Form 8-K filed with the SEC, the Company
disclosed that it had received a letter in November 2017 from the SEC
regarding an inquiry that the SEC was conducting into EPS calculation
practices and requesting that the Company voluntarily provide certain
information and documents relating to its EPS rounding and reporting
practices. The March 4, 2019 Form 8-K also revealed to investors that,
during the fourth quarter of 2018, the Company authorized its outside
counsel to conduct an internal investigation, under the direction of the
Company’s Audit Committee, into matters related to the SEC subpoena.
On this news, the Company’s stock price fell from $37.74 per share on
March 1, 2019 to $32.78 per share on March 4, 2019—a $4.96 or 13.14%
The court-appointed lead plaintiff is the investor with the largest
financial interest in the relief sought by the class who is adequate and
typical of class members who directs and oversees the litigation on
behalf of the putative class. Any member of the putative class may move
the Court to serve as lead plaintiff through counsel of their choice, or
may choose to do nothing and remain an absent class member. Your ability
to share in any recovery is not affected by the decision to serve as a
lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding
Healthcare Services Group conduct to contact the firm, including
whistleblowers, former employees, shareholders and others.
Attorney Advertising. The law firm responsible for this advertisement is
Faruqi & Faruqi, LLP (www.faruqilaw.com).
Prior results do not guarantee or predict a similar outcome with respect
to any future matter. We welcome the opportunity to discuss your
particular case. All communications will be treated in a confidential
FARUQI & FARUQI, LLP
685 Third Avenue, 26th Floor
York, NY 10017
Attn: Richard Gonnello, Esq.
(877) 247-4292 or (212) 983-9330