January 21, 2020 - A consolidated amended complaint was filed.
May 29, 2019 - An investor in shares of Community Health Systems (NYSE: CYH) filed a lawsuit in the U.S. District Court for the Middle District of Tennessee over alleged violations of Federal Securities Laws by Community Health Systems in connection with certain allegedly false and misleading statements made between February 20, 2017 and February 27, 2018.
Franklin, TN based Community Health Systems, Inc., together with its subsidiaries, owns, leases, and operates general acute care hospitals in the United States.
On February 27, 2018, Community Health Systems reveled that its fourth quarter 2017 net operating revenues totaled $3.059 billion and were negatively impacted by a $591 million increase in contractual allowances and provision for bad debts. Shares of Community Health Systems (NYSE: CYH) declined from $62.8 per share on February 27, 2018 to as low as $2.66 per share in July 2018.
According to the complaint the plaintiff alleges on behalf of purchasers of Community Health Systems (NYSE: CYH) common shares between February 20, 2017 and February 27, 2018, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between February 20, 2017 and February 27, 2018, the Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that the Company had understated its contractual allowances, that the Company had understated its provision for bad debts, that, as a result, the Company had overstated its net operating revenue, that, as a result, the Company had understated its net loss, and that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.