Robbins Arroyo LLP: U.S. Physical Therapy, Inc. (USPH) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed against U.S. Physical Therapy, Inc. (NYSE: USPH) (“USPH”) in the U.S. District Court for the Southern District of New York. The complaint is brought on behalf of all purchasers of USPH securities between May 8, 2014 and March 16, 2017, for alleged violations of the Securities Exchange Act of 1934 by USPH’s officers and directors. USPH operates outpatient physical and occupational therapy clinics for pre- and post-operative care for a variety of orthopedic-related disorders and sports-related injuries, rehabilitation of injured workers, and preventative care.
U.S. Physical Therapy Accused of Failing to Disclose Material Weakness in its Internal Controls
According to the complaint, in a series of filings with the U.S. Securities Exchange Commission, USPH officials attested to the accuracy of the company’s financial statements, the effectiveness of the internal controls, and the disclosure of all fraud. On August 7, 2014, USPH issued a press release stating that it was raising its 2014 earnings guidance, net income had increased compared to the same period in the prior year, and net revenues had increased. In commenting on these results, Chris Reading, USPH’s Chief Executive Officer, stated, “Our Fit2WRK group continues to land terrific employer accounts which have assisted us in further improving our payor base while also driving new customers into our many partnerships around the country.” However, the complaint alleges that USPH officials failed to disclose that the company had a material weakness in its internal controls over accounting and financial reporting, that the company’s improper accounting resulted in violations of Generally Accepted Accounting Principles, and as a result, the company’s financial statements were inaccurate and unreliable.
On March 16, 2017, USPH announced that its historical accounting for redeemable non-controlling interests of acquired partnerships was incorrect, and that the error would result in unreliable financial statements for the years ended December 31, 2015 and 2014, all quarters within 2014 and 2015, and the first three quarters of 2016. USPH further disclosed that it would restate certain figures for the affected periods, and that it would need to file a Notification of Late Filing for its Annual Report on Form 10-K for the year ended December 31, 2016, which it expected to file on or before March 31, 2017. On this news, USPH’s stock fell $3.85 per share, or 5.2%, to close at $69.90 per share on March 16, 2017.
U.S. Physical Therapy Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, or you can complete the form below and we will contact you directly.
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