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Old 04-27-2012, 02:08 AM   #18
SirFozzie
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Join Date: Nov 2000
Location: The State of Insanity
Looks like the stock was the proverbial "dead cat" bounce, as they actually finished the day for a loss, down to $10.50, with apparently multiple lawsuits being eyed/launched for Gross violations of management's fiduciary duties to shareholders, and one lawsuit alleges that:

he Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements, and omitted materially adverse facts, about the Company’s business, operations and prospects. Specifically, the Complaint alleges that Accretive Health failed to disclose that the Company was violating health privacy laws, state debt collections laws and state consumer protection laws. As a result of defendants’ false and misleading statements, the Company’s stock traded at artificially inflated prices

...

The Complaint also alleges that these true facts, which were known by the defendants but concealed from the investing public during the Class Period, were as follows: (a) the Company was violating privacy standards under the Health Insurance Portability and Accountability Act and the Health Information Technology for Economic and Clinical Health Act by, among other things, (i) failing to provide appropriate safeguards to prevent the misuse or disclosure of protected health information; (ii) failing to keep all protected health information strictly confidential; and (iii) failing to develop, implement, maintain and use appropriate technical and physical safeguards to preserve the integrity, confidentiality and availability of protected health information and to prevent non-permitted use or disclosure of the information; (b) the Company failed to encrypt protected patient health information; (c) the Company was violating terms of its contract with Fairview by failing to limit access of protected health information to the persons or classes of persons in its workforce who needed access to it in order to carry out their duties; (d) the Company was violating Minnesota state debt collection laws by, among other things, failing to provide patients with required disclosures identifying itself as a debt collection agency; (e) the Company was violating Minnesota consumer protection laws by, among other things, failing to disclose to patients the extent of the Company’s access to data and the manner in which it utilizes such data; and (f) the effect the Company’s violations of health privacy laws, state debt collection laws and state consumer protections law would have on its future earnings and on its relationship with Fairview.
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