Have you lost money on your investments in Cano Health? If yes, please visit Cano Health, Inc. Shareholder Class Action or contact Pierre Allocco at (212) 951-2030 Where [email protected] to discuss your rights.
NEW YORK, May 10, 2022 (GLOBE NEWSWIRE) — Bernstein Liebhard LLP, a nationally recognized investor rights law firm, reminds investors of the deadline to file a motion as lead plaintiff in connection with a securities class action lawsuit filed on behalf of investors who purchased or acquired the securities of Cano Health, Inc. (“Cano” or the “Company”) f/k/a Jaws Acquisition Corp. (“Jaws”) (: CANO) between May 18, 2020 and February 25, 2022, inclusive (the “Class Period”). The lawsuit was filed in the United States District Court for the Southern District of Florida and alleges violations of the Securities Exchange Act of 1934.
Cano provides primary care medical services to its members in the United States and Puerto Rico. The Company owns and operates medical centers, as well as pharmacies.
Cano was formerly a Special Purpose Acquisition Corporation (“SPAC”) and operated as “Jaws Acquisition Corp.” On June 3, 2021, Jaws completed a merger with Primary Care (ITC) Intermediate Holdings, LLC (“PCHI”), whereby, among other things, Jaws changed its name to “Cano Health, Inc.” and began providing primary care medical services (the “Business Combination”).
Throughout the Class Period, Defendants have made materially false and misleading statements regarding the Company’s business, operations and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Cano overstated its due diligence efforts and expertise in acquiring target businesses; (ii) as a result, Cano performed inadequate due diligence to determine whether the Company, post-business combination, could properly account for the timing of revenue recognition as prescribed by ASC 606, particularly with respect to relates to Medicare risk adjustments; (iii) as a result, the Company misreported its capitation revenues, direct patient expenses, accounts receivable, net of unpaid service provider costs, and accounts payable and accrued liabilities; (iv) as a result, the Company was at increased risk of not filing one or more of its periodic financial reports on time; and (v) as a result, the Company’s public statements were materially false and misleading at all material times.
On February 28, 2022, Cano issued a press release “announcing[ing] it will delay the release of fourth quarter and full year 2021 results, conference call and guidance updates for 2022, originally scheduled for Monday, February 28, 2022.” In explaining the delay, Cano indicated that “in As part of finalizing its audit of the financial statements for the year ended December 31, 2021, the Company and its independent auditor… identified certain potential non-cash adjustments to reflect revenue recognition under accounting standard ASC 606 Specifically, Cano indicated that “[t]The adjustments relate to how and when the Company recognizes revenue related to Medicare risk adjustments” and that “[t]The adjustments are expected to impact the timing of revenue recognition, by delaying the recognition of certain amounts related to the Medicare risk adjustment to later periods[.]”
On this news, the price of Cano’s Class A common stock fell $0.32 per share, or 6.17%, to close at $4.87 per share on February 28, 2022.
On March 14, 2022, Cano filed its annual report for the three months and year ended December 31, 2021 (the “2021 10-K”). This filing stated, among other things, that “[t]Correction of timing of revenue recognition under ASC 606 resulted in adjustments to capitation revenue, direct patient expenses, accounts receivable, net of unpaid service provider costs, and accounts payable and accrued liabilities to pay[,]and that the Company has therefore “restated its financial statements for each of the quarterly periods ended March 31, 2021, June 30, 2021 and September 30, 2021 as [2021 10-K.]For example, the 2021 10-K reported that, as restated, per capita income decreased 2.13% for the three months ended March 31, 2021; 13.11% for the three months ended June 30, 2021; and 5.58% for the three months ended September 30, 2021.
If you wish to act as the main plaintiff, you must apply to the court no later than May 17, 2022. A lead plaintiff is a representative party acting on behalf of other class members to direct litigation. Your ability to participate in any recovery does not require you to serve as the primary plaintiff. If you choose to do nothing, you can remain an absent member of the group.
If you have purchased CANO titles and/or would like to discuss your legal rights and options please visit Cano Health, Inc. Shareholder Class Action or contact Pierre Allocco at (212) 951-2030 or [email protected].com.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the firm has been retained by some of the nation’s largest public and private pension funds to oversee their assets and bring lawsuits on their behalf. As a result of its success in hundreds of lawsuits and class actions, the firm has been named to the National Law Journal’s “plaintiffs list” thirteen times and listed in The Legal 500 for ten consecutive years.
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