Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses In Excess Of $100,000 Investing In Nobilis Health Corp. To Contact The Firm Before Lead Plaintiff Deadline
Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Nobilis Health Corp. (“Nobilis” or the “Company”) (NYSE MKT:HLTH) of the March 21, 2016 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.
The lawsuit has been filed in the U.S. District Court for the Southern District of Texas on behalf of all those who purchased Nobilis securities between April 2, 2015 and January 6, 2016 (the “Class Period”). The case, Schott v. Nobilis Health Corp. et al, No. 4:16-cv-00141 was filed on January 19, 2016, and has been assigned to Judge Lee H. Rosenthal.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by overstating the Company’s net income for the year ended December 31, 2014 by more than $4 million and its net income for the quarter ended March 31, 2015 by more than $3.27 million as well as by reporting numerous errors in the Company’s classification of warrants and options, business combination accounting, share-based compensation, and other financial and operating results
Specifically, on October 9, 2015, an article published in Seeking Alpha questioned Nobilis’s accounting practices and listed concerns on the resignation of Nobilis’s auditor, Calvetti Ferguson P.C., on August 14, 2015. On this news, Nobilis’s share price fell from $5.24 per share on October 8, 2015 to a closing price of $3.82 on October 9, 2015—a $1.42 or a 27.1% drop.
Then, after the market closed on November 11, 2015, Nobilis announced that its preliminary results for the third quarter of 2015 and its final earnings release would be delayed. After the announcement, Nobilis’s share price fell from $3.60 per share on November 11, 2015 to a closing price of $2.95 on November 12, 2015—a $0.65 or a 18.1% drop.
Then, after the market closed on January 5, 2015, the Company disclosed that its financial statements had numerous reporting errors including gross overstatements of net income for the fiscal year ended December 31, 2014 and the quarters ended March 31, 2015 and June 30, 2015. The Company also advised that its updated S-1 registration statement filed on October 23, 2015 is unreliable.
Finally, on January 7, 2016, Nobilis announced that its CEO, Christopher J. Lloyd, had suddenly resigned. After the announcement, Nobilis’s share price fell from $3.10 per share on January 6, 2016 to a closing price of $2.47 on January 7, 2016—a $0.63 or a 20.3% drop
If you invested in Nobilis securities between April 2, 2015 and January 6, 2016 and would like to discuss your legal rights,please contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org. Faruqi & Faruqi, LLP also encourages anyone with information regarding Nobilis’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
Richard W. Gonnello
Faruqi & Faruqi, LLP
685 Third Avenue 26th Floor
New York, NY 10017
Tel: (212) 983-9330
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