Accretive Faces Shareholder Suit Over Stock Plunge

Law360, New York (April 27, 2012, 8:31 PM EDT) -- An Accretive Health Inc. shareholder Thursday hit the medical debt collection firm with a proposed securities class action in Illinois federal court related to plunging stock value after allegations surfaced of over-the-top billing practices, including emergency room demands for payment.

Investor Linda Wong accuses Mary A. Tolan, the company’s CEO, and John T. Staton, the business’s chief financial officer, of issuing optimistic profit forecasts while Accretive at the same time was erecting a house of cards structured on violations of consumer protection statutes.

The executives repeatedly...
To view the full article, register now.