NYSE
QHC

Quorum Health Corporation

Shareholder Securities Fraud Litigation

Rigrodsky & Long, P.A. Announces A Securities Fraud Class Action Lawsuit Has Been Filed Against Quorum Health Corporation (NYSE: QHC)

Rigrodsky & Long, P.A. announces that a complaint has been filed in the United States District Court for the Middle District of Tennessee on behalf of all persons or entities that purchased the common stock of Quorum Health Corporation (“Quorum” or the “Company”) (NYSE: QHC) between May 2, 2016 and August 10, 2016, inclusive, including those investors who acquired Quorum shares in connection with the Company’s spin-off from Community Health Systems, Inc. (“CHS”) (collectively, the “Class Period), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).

If you purchased shares of Quorum during the Class Period, or acquired them in connection with the spin-off from CHS, and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Timothy J. MacFall, Esquire or Peter Allocco of Rigrodsky & Long, P.A., 2 Righter Parkway, Suite 120, Wilmington, DE 19803 at (888) 969-4242; by e-mail to info@rl-legal.com.

The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements, and omitted materially adverse facts, about the Company’s business, operations and prospects.  Specifically, the Complaint alleges that the defendants concealed from the investing public that: (1) a number of Quorum’s hospitals were underperforming at the time of the spin-off from CHS; (2) various other indicators of impairment existed at the time of Quorum’s spin-off from CHS; (3) Quorum disregarded and/or failed to advise investors of the foregoing issues; and (4) as a result of the foregoing, Quorum’s public statements were materially false and misleading at all relevant times.  As a result of defendants’ alleged false and misleading statements, the Company’s stock traded at artificially inflated prices during the Class Period.

According to the Complaint, on August 10, 2016, Quorum issued a press release and filed a Quarterly Report on Form 10-Q with the SEC announcing the Company’s financial and operating results for the three months ended June 30, 2016 (the “Q2 2016 10-Q”).  In the press release and Q2 2016 10-Q, Quorum reported a substantial net loss and an operating loss for the quarter.  Defendants blamed the large operating loss on the $250.4 million in impairment charges Quorum had taken in the quarter, including $45.4 million to reduce certain long-lived asset values in property, equipment and software; $5 million in goodwill based on management’s decision to divest certain hospitals; and $200 million related to the carryover allocation of goodwill at the time of the spin-off from CHS.

On this news, shares in Quorum plummeted almost 50%, closing at $5.03 per share on August 11, 2016, on heavy trading volume.

If you wish to serve as lead plaintiff, you must move the Court no later than November 8, 2016.  A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  Any member of the proposed 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.

Attorney advertising.  Prior results do not guarantee a similar outcome.