On June 17, 2019, the Honorable Eduardo C. Robreno of the U.S. District Court for the Eastern District of Pennsylvania appointed Berman Tabacco as Lead Counsel for plaintiffs in the securities class action lawsuit against Healthcare Services Group, Inc. and its chief executive officer. The action was brought on behalf of all persons who acquired the common stock of the Company during the Class Period of April 11, 2017 and March 4, 2019. The Order further appointed as Lead Plaintiff Berman Tabacco’s client, a state public pension fund.
Healthcare Services Group, Inc. purports to be one of the largest providers of housekeeping and laundry services to hospitals and other healthcare service organizations. The action currently alleges that during the Class Period, defendants issued materially false and misleading statements and failed to disclose “earnings management” practices that allowed the Company to consistently meet or beat earnings per share estimates that, in turn, caused the price of the company’s stock to be artificially inflated. The firm’s investigation is ongoing and plaintiffs anticipate filing an amended complaint in the coming months.
“We look forward to vigorously prosecuting this action on our client’s behalf,” commented Boston Partner Patrick T. Egan.
The case is: Koch v. Healthcare Services Group, Inc., et al., No. 1:19-cv-01227-ER (E.D. Pa). The litigation team includes Nicole Lavallee from the firm’s San Francisco office, and Patrick T. Egan and Steven J. Buttacavoli from the Boston office.