Faruqi & Faruqi, LLP is Investigating Accretive Health, Inc. on Behalf of its Shareholders (AH)
Faruqi & Faruqi, LLP, a national law firm concentrating on investor rights, consumer rights and enforcement of federal antitrust laws, is investigating potential wrongdoing at Accretive Health, Inc. (“Accretive Health” or the “Company”) (NYSE: AH). The investigation focuses on whether certain officers and directors of Accretive Health breached their fiduciary duties by failing to provide appropriate safeguards to prevent the misuse or disclosure of confidential and protected health information and by causing the Company to engage in unlawful debt collection practices in hospital emergency rooms.
Accretive Health provides revenue cycle management services for hospitals and healthcare providers in the United States. On March 29, 2012, the Company announced that in response to a lawsuit filed by Minnesota’s Attorney General, it had agreed to no longer collect debts on behalf of Fairview Health Services (“Fairview”) and would transition management of those operations to Fairview. Accretive Health further announced that it expected this change to negatively impact its fiscal year 2012 revenue by $62 million to $68 million. On this news, the Company’s stock dropped $4.46 per share to close at $19.60 per share on March 29, 2012, a one-day decline of nearly 19% on high volume.
Then, on April 24, 2012, the Minnesota Attorney General released a report which highlighted aggressive and illegal debt-collection practices used by the Company, including demanding payment from people seeking care in emergency rooms, cancer wards and delivery rooms. The report raised concerns that such practices have become common at hospitals across the country. The report also alleged that the Company was violating privacy standards under the Health Insurance Portability and Accountability Act and the Health Information Technology for Economic and Clinical Health Act by, among other things: (i) failing to provide appropriate safeguards to prevent the misuse or disclosure of protected health information; (ii) failing to keep all protected health information strictly confidential; and (iii) failing to develop, implement, maintain and use appropriate technical and physical safeguards to preserve the integrity, confidentiality and availability of protected health information and to prevent non-permitted use or disclosure of the information. As a result of this news, the Company’s stock plummeted $7.63 per share to close at $10.86 per share on April 25, 2012, a one-day decline of 41% on high volume.
If you are a current Accretive Health shareholder, and you would like to discuss your legal rights, contact us by calling Beth Keller toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org.
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