SHAREHOLDER ALERT - Bronstein, Gewirtz & Grossman, LLC Notifies Investors of Class Action Against MEDNAX, Inc. (MD) and Lead Plaintiff Deadline - September 10, 2018
NEW YORK, July 18, 2018 /PRNewswire/ -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC notifies investors that a class action lawsuit has been filed against MEDNAX, Inc. ("Mednax" or the "Company") (NYSE: MD) and certain of its officers, on behalf of shareholders who purchased or otherwise acquired Mednax securities between February 4, 2016 to July 27, 2017 (the "Class Period"). Such investors are encouraged to join this case by visiting the firm's site: www.bgandg.com/md.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934.
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements and/or failed to disclose that: (1) the Company's business model depended on growth from the acquisition of new practice groups, primarily in anesthesiology; and that (2) Mednax's business model is not sustainable and its growth was based upon suppressing physician compensation and enforcing non-compete agreements to deter physician defections.
On April 20, 2017, Mednax announced negative financial results for the first quarter of 2017, including missed earnings. Mednax cited negative trends including "payor mix" degradation, lower volume of newborn infant patients, and wage inflation, with half of the financial impact related to business in North Carolina and Texas. On this news, Mednax's stock price fell $5.39 per share, or 8.1%, to close at $61.30 per share on April 20, 2017. Then, on July 28, 2017, during its second quarter earnings call with investors and analysts, Mednax announced that the Company had failed to complete any acquisitions of anesthesiologist practices during the quarter and that any future anesthesiologist acquisitions were unlikely, citing the "challenging" payor mix combined with "continued . . . growth in compensation expense for nurse anesthetists." On this news, Mednax's stock price fell $8.76 per share, or 15.5%, to close at $47.73 per share on July 28, 2017.
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint you can visit the firm's site: www.bgandg.com/md or you may contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484. If you suffered a loss in Mednax you have until September 10, 2018 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact:
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Hurwitz
212-697-6484 | [email protected]
SOURCE Bronstein, Gewirtz & Grossman, LLC
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