Pomerantz LLP announces that a class action lawsuit has been filed against Envision Healthcare Corporation ("Envision" or the "Company") (NYSE: EVHC) and certain of its officers. The class action, filed in United States District Court, Middle District of Tennessee, and docketed under 17-cv-01112, is on behalf of a class consisting of investors who purchased or otherwise acquired Envision securities, seeking to recover compensable damages caused by defendants' violations of the Securities Exchange Act of 1934.
Envision Healthcare Corporation provides health care services. The Hospital offers surgery, pharmacy, medical imaging, emergency care, and other related health care services. Envision Healthcare serves patients in the United States. At all relevant times, EmCare Holdings, Inc. ("EmCare") has been one of the Company's primary operating subsidiaries.
The complaint alleges that throughout the Class Period, defendants made materially false and misleading statements regarding the Company's business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) EmCare routinely arranged for patients who sought treatment at in-network facilities to be treated by out-of-network physicians; (ii) EmCare accordingly billed these patients at higher rates than if the patients had received treatment from in-network physicians; (iii) the Company's statements attributing EmCare's Class Period growth to other factors were therefore false and/or misleading; (iv) Envision's EmCare revenues were likely to be unsustainable after the foregoing conduct came to light; and (v) as a result of the foregoing, Envision's public statements were materially false and misleading at all relevant times.
On July 24, 2017, The New York Times reported that hospitals associated with Envision's subsidiary EmCare were disproportionately likely to engage in "surprise billing," in which patients who sought treatment at in-network facilities were treated by out-of-network physicians and subsequently billed at higher rates.
On this news, Envision's share price fell $2.33, or 3.72%, to close at $60.28 on July 24, 2017.