SAN DIEGO, March 23, 2022 /PRNewswire/ — The law firm of Robbins Geller Rudmann & Dowd LLP announces that purchasers of Cano Health, Inc. f/k/a Jaws Acquisition Corp. (NYSE: CANO; CANO/WS; JWS; JWS.U; JWS WS) between May 18, 2020 and February 25, 2022inclusively (the “Class Period”) have until May 17, 2022 to seek appointment as lead applicant in González c. Cano Health, Inc. f/k/a Jaws Acquisition Corp., no. 22-cv-20827 (SD Fla.). Started on March 18, 2022the Canoe Health The class action accuses Cano Health and some of its top executives of violating the Securities Exchange Act of 1934.
If you have suffered significant losses and wish to act as the lead plaintiff of the Canoe Health class action, please provide your information by clicking here. You can also contact a lawyer JC Sanchez of Robbins Geller by calling 800/449-4900 or emailing [email protected]. Principal Applicant’s Requests for Canoe Health class action must be filed with the court no later than May 17, 2022.
CASE ALLEGATIONS: Cano Health provides primary care medical services to its members in United States and Puerto Rico. Cano Health was formerly a Special Purpose Acquisition Company (“SPAC” or Blank Check Company) and operated as “Jaws Acquisition Corp.” At June 3, 2021, Jaws merged with Primary Care (ITC) Intermediate Holdings, LLC, changed its name to “Cano Health, Inc.” and began providing primary care medical services.
the Canoe Health The Class Action alleges that, throughout the Class Period, the Defendants made false and misleading statements and failed to disclose that: (i) Cano Health overstated its due diligence efforts and expertise in acquisition of target companies; (ii) as a result, Cano Health exercised inadequate due diligence to determine whether Cano Health, post-business combination, could properly account for the timing of revenue recognition as required by ASC 606, particularly with respect to regarding Medicare risk adjustments; (iii) as a result, Cano Health misrepresented its capitation revenues, direct patient expenses, accounts receivable, net of unpaid service provider costs, and accounts payable and accrued liabilities; (iv) as a result, Cano Health was at increased risk of not filing one or more of its periodic financial reports on a timely basis; and (v) therefore, Cano Health’s public statements were materially false and misleading at all material times.
At February 28, 2022Cano Health issued a press release “announcing[ing] it will delay the release of its fourth quarter and full year 2021 results, conference call and updates to its 2022 guidance, originally scheduled for monday 28 february2022.” In explaining the delay, Cano Health noted that “in connection with finalizing its audit of the financial statements for the year ended December 31, 2021, [Cano Health] and its independent auditor. . . identified certain potential non-cash adjustments to account for revenue recognition under ASC 606 accounting standard.” Specifically, Cano Health stated that “[t]Adjustments relate to how and when [Cano Health] generates 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. At this news, Cano Health’s Class A common stock price fell more than 6%, hurting investors.
At March 14, 2022Cano Health has filed its annual report for the quarter 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 payable”, and that Cano Health has therefore “restated its financial statements for each of the quarterly periods ended March 31, 2021, June 30, 2021 and September 30, 2021 in the [2021 10-K].”
Robbins Geller launched a dedicated SPAC working group to protect investors in blank check companies and seek redress for corporate wrongdoing. Comprised of experienced litigators, investigators and forensic accountants, the SPAC Task Force is dedicated to researching and prosecuting fraud on behalf of aggrieved SPAC investors. The rise of blank check funding presents unique risks for investors. Robbins Geller’s SPAC Task Force represents the forefront of ensuring integrity, honesty and fairness in this rapidly developing area of investment.
THE PRINCIPAL APPLICANT PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased securities of Cano Health during the Class Period to seek appointment as lead plaintiff in the Canoe Health class action. A principal plaintiff is generally the plaintiff with the greatest financial interest in the remedy sought by the putative class that is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the class action. The lead plaintiff may select a law firm of their choice to litigate the class action. An investor’s ability to share in any potential future class action recoveries does not depend on its status as lead plaintiff.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: Robbins Geller Rudman & Dowd LLP is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases. The firm is ranked #1 in the 2021 ISS Securities Class Action Services Top 50 report for recovering nearly $2 billion for investors last year alone – more than triple the amount recovered by any other company from the plaintiffs. With 200 attorneys in 9 offices, Robbins Geller attorneys have secured many of the largest securities class action recoveries in history, including the largest securities class action recoveries ever – $7.2 billion – in In re Enron Corp. Dry. Litigation Please visit http://www.rgrdlaw.com for more information.
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