Faruqi & Faruqi, LLP Announces Investigation of HCA Holdings Inc.
Faruqi & Faruqi, LLP, a national law firm concentrating on investor rights, consumer rights and enforcement of federal antitrust laws, is investigating potential wrongdoing at HCA Holdings, Inc. (“HCA” or the “Company”) (NYSE: HCA). Faruqi & Faruqi, LLP seeks to determine whether HCA violated federal securities laws in connection with statements made to the Company’s shareholders. Faruqi & Faruqi, LLP also seeks to determine whether any of the underwriters of the Company’s March 9, 2011 initial public offering (“IPO”) violated federal securities laws in connection with their activities.
The investigation focuses on whether HCA: (1) improperly accounted for its prior business combinations in violation of Generally Accepted Accounting Principles, causing its financial results to be materially misstated; (2) failed to maintain effective internal controls concerning its accounting for business combinations; and (3) failed to disclose adverse trends and uncertainties as required by SEC regulations concerning its revenue growth rate.
On July 25, 2011, HCA issued a press release announcing disappointing second quarter 2011 financial results. On this news, HCA’s stock declined $6.64 per share to close at $27.97 per share on July 25, 2011, a one-day decline of nearly 20%.
Then, on October 1, 2011, Barron’s issued an article entitled “Where Did the $15.8 Billion Go?”, which questioned HCA’s accounting practices. According to the article, HCA essentially used the pooling-of-interests method, which had been eliminated by the Financial Accounting Standards Board in 2001 in order to improve the quality of information provided to investors and users of financial statements. Using the prohibited method would have allowed HCA to overstate its earnings. On this news, HCA’s stock declined $1.35 per share to close at $18.81 per share on October 3, 2011, a one-day decline of nearly 7% and a nearly 38% decline from the stock’s IPO price.
If you purchased HCA securities in the Company’s March 9, 2011 IPO or any time thereafter and you would like to discuss your legal rights, contact us by calling Anthony Vozzolo or Richard W. Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org or email@example.com. Faruqi & Faruqi, LLP also encourages anyone with information regarding HCA’s conduct during the period in question 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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