Health Cos. To Pay $18M To End Stock-Drop Suit Over Spinoff
Law360 (July 21, 2020, 10:27 PM EDT) -- A certified class of shareholders asked a Tennessee federal judge Tuesday for preliminary approval of an $18 million settlement to end their stock-drop suit accusing hospital provider Community Health Systems Inc. and its spinoff Quorum Health Corp. of withholding financial expectations from investors.
The deal will cover those who bought Quorum common stock between May 2016 and August 2016, and represents between about 12.7% and 42.9% of estimated recoverable damages, which, according to the class, is an "objectively excellent" outcome when compared to other class action deals.
The shareholders have alleged that the stock they purchased was being traded at an...
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