SAN FRANCISCO, Feb. 28, 2020 /PRNewswire/ -- Hagens Berman urges investors in Addus HomeCare Corporation (NASDAQ: ADUS) who have suffered significant losses to submit their losses now. The firm is investigating possible securities law violations, and certain investors may have valuable claims.
Relevant Holding Period: Before Feb. 28, 2020
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Addus HomeCare Corporation (ADUS) Investigation:
The investigation concerns the propriety of Addus' revenue recognition practices and accuracy of its reported financial statements.
In past quarters, Addus represented that it properly records price concessions to customers and that its financial statements were prepared in accordance with GAAP. The Company further affirmed the effectiveness of its internal control over financial reporting.
But on Feb. 27, 2020, after the market closed, Addus announced it would not timely file its FY 2019 financial statements. The Company explained that it needed time "to complete the valuation of a non-cash implicit price concession related to revenue and accounts receivable, including the periods to which it relates, and to perform the related internal controls assessment."
This news drove the price of Addus shares down $13.28, down almost 15%, erasing over $200 million in market capitalization.
"We're focused on investors' losses and whether Addus improperly recognized revenues to seem more profitable," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you purchased shares of Addus and suffered significant losses, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Addus should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email ADUS@hbsslaw.com.
About Hagens Berman
Hagens Berman is a national law firm with nine offices in eight cities around the country and eighty attorneys. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes is located at hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.
Reed Kathrein, 844-916-0895
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SOURCE Hagens Berman Sobol Shapiro LLP