Welcome to the Accretive Health, Inc. Securities Litigation Website
This website has been established to provide general information related to the proposed settlement of the Accretive Health, Inc. ("Accretive") Securities Litigation. The capitalized terms used on this website, and not defined herein, shall have the same meanings ascribed to them in the Stipulation of Settlement (the "Stipulation") dated February 19, 2016, which can be found and downloaded by clicking on the Case Documents tab above.
This is a securities class action litigation currently pending before the Honorable Joan B. Gottschall. in the United States District Court for the Northern District of Illinois (the “Court”), and the case is known as Hughes v. Accretive Health, Inc. et al., Case No. 13-cv-03688. The Court has appointed the law firm of Glancy Prongay & Murray LLP as Lead Counsel to represent Lead Plaintiff and all other Settlement Class Members in the Litigation.
In this lawsuit, Lead Plaintiff alleged that Defendants knowingly or with deliberate recklessness engaged in a scheme to manipulate the price of Accretive Health common stock. Accretive Health is a Delaware corporation with its principal executive offices located in Chicago, Illinois. During most of the Settlement Class Period, the period commencing on May 20, 2010, through December 30, 2014, inclusive, Accretive Health common stock traded on the New York Stock Exchange under the ticker symbol “ACHI.” Accretive Health provides revenue cycle operations management for hospitals. As compensation, Accretive Health receives both base fees for managing its customers’ revenue cycle operations, as well as incentive fees, which represent Accretive Health’s share of the improvements in its customers’ net revenue yields.
Lead Plaintiff alleges that during the Settlement Class Period, Defendants issued false and materially misleading statements and omissions in Accretive Health’s financial results by improperly recognizing revenue that was not “fixed or determinable,” and that as a result, Accretive Health eventually restated hundreds of millions of dollars in reported revenue. As alleged in Lead Plaintiff’s operative complaint, the improperly recognized fees were not fixed or determinable at the time recognized because substantially all of the revenue cycle management agreements were continually under negotiation throughout the contract term, there was a “historical pattern of [fee] adjustments and concessions,” and fees were “not finalized until the end of the contract.” Lead Plaintiff alleges that Defendants were fully aware of the historical pattern of adjustments, concessions, and continuous negotiations, and thus knew or were deliberately reckless in not knowing that Accretive Health was recognizing revenue that was not fixed or determinable during the Settlement Class Period. Lead Plaintiff further alleges that Defendants’ false and misleading statements and omissions materially inflated the price of Accretive Health’s stock.
Defendants have vehemently contested, and continue to deny, Lead Plaintiff’s allegations or that they engaged in any wrongdoing whatsoever. Defendants have expressly denied and continue to deny that they have committed any act or omission giving rise to any liability or violation of law whatsoever and maintain that their conduct was at all times proper and in compliance with all applicable provisions of law. Defendants have denied and continue to deny specifically each and all of the claims and contentions alleged by Lead Plaintiff, along with all charges of wrongdoing or liability against them arising out of any of the conduct, statements, acts or omissions alleged, or that could have been alleged, by Lead Plaintiff. Defendants also have denied and continue to deny, inter alia, the allegations that any of the Defendants knew or recklessly disregarded that any material misstatements or omissions were being made; that any member of the Class has suffered any damages; that the price of Accretive Health common stock was artificially inflated by reason of the alleged misrepresentations, omissions, or otherwise; or that the members of the Class were harmed by the conduct alleged in the Litigation or that could have been alleged as part of the Litigation. In addition, the Defendants maintain they have meritorious defenses to all claims alleged in the Litigation.
The Settlement Class is defined as all Persons who purchased all Persons who purchased or otherwise acquired the common stock of Accretive Health, purchased or otherwise acquired call options on Accretive Health common stock, or wrote put options on Accretive Health common stock, between May 20, 2010, through December 30, 2014, inclusive, and who were allegedly damaged thereby.
The Settlement provides for Defendants to cause to be paid $3.9 million in cash into an Escrow Account that will be distributed to eligible Settlement Class Members, after certain deductions described below have been made. If the Settlement is finally approved, the payments will be distributed to Settlement Class Members in accordance with a Court-approved Plan of Allocation described elsewhere in the Notice of Proposed Settlement of Class Action, Motion for Attorneys' Fees and Expenses, and Settlement Hearing (the "Notice").
Although the information on this website is intended to assist you, it does not replace the information contained in the Notice and the Stipulation, both of which can be found and downloaded from this website. We recommend that you read the Notice and other relevant case documents carefully.
YOUR LEGAL RIGHTS AND OPTIONS IN THE SETTLEMENT
|Submit a Claim and Release form so that it is postmarked no later than July 6, 2016.
||If the Settlement is approved and you are a member of the Settlement Class, you may be entitled to receive a payment. But you must submit a Proof of Claim and Release (“Proof of Claim”) form to share in the proceeds. This is the only way to get a payment. A copy of the Proof of Claim form is available by clicking the Case Documents tab above. If you remain in the Settlement Class, you will be bound by the Settlement and will give up any and all of the Released Claims you may have against the Persons who are being released from liability as described in the Notice.
|Exclude Yourself from the Settlement Class by submitting a written request for exclusion no later than June 7, 2016.
||If you exclude yourself from the Settlement Class, you will not get a payment from the Settlement and will not be bound by the judgment that will be entered by the Court regarding the Settlement.
|Object to the Settlement by submitting a written objection no later than June 7, 2016.
||If you do not exclude yourself but you wish to object to the proposed Settlement, the proposed Plan of Allocation, and/or Lead Counsel’s application for a Fee and Expense Award and the Lead Plaintiff Cost and Expense Awardyou may write to the Court about your objections. You cannot object unless you are a Settlement Class Member. The contents and manner of submitting any written objection is set forth in the Notice. You must comply with these provisions for your objection to be considered.
|Attend the Hearing on June 28, 2016, and submit a Notice of Intention to Appear no later than June 7, 2016.
||Filing a written objection and notice of intention to appear allows you to speak in Court about the fairness of the proposed Settlement. If you have submitted a written objection, you may (but do not have to) attend the hearing and speak to the Court about your objections.
||Receive no payment, remain a Settlement Class Member, give up your rights and be bound by the judgment that will be entered by the Court regarding the Settlement, including, without limitation, the releases that will be set forth in that judgment.
IMPORTANT DATES & DEADLINES
|Submit a Claim Form:
||July 6, 2016
||June 7. 2016
|File an Objection:
||June 7. 2016
||June 28, 2016 at 10:00 a.m.