Lieff Cabraser Civil Justice Blog
HCSG INVESTORS ALERT: Lieff Cabraser Announces Securities Class Action Against Healthcare Services Group, Inc.

HCSG INVESTORS ALERT: Lieff Cabraser Announces Securities Class Action Against Healthcare Services Group, Inc.

Lieff Cabraser announces that class action litigation has been filed on behalf of investors who purchased or otherwise acquired the securities of Healthcares Service Group, Inc. (“Healthcare Services Group” or the “Company”) (Nasdaq: HCSG) between April 11, 2017 and March 4, 2019, inclusive (the “Class Period”).

If you purchased or otherwise acquired Healthcare Services Group securities during the Class Period, you may move the Court for appointment as lead plaintiff by no later than May 21, 2019. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the litigation will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the litigation.

Healthcare Services Group investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff should click here or contact Sharon M. Lee of Lieff Cabraser toll-free at 1-800-541-7358.

Background on the Healthcare Services Group Securities Class Litigation

Healthcare Services Group, based in Bensalem, Pennsylvania, engages in the
management, administrative, and operating services to the housekeeping, laundry, linen, facility maintenance, and dietary service departments to nursing homes, retirement complexes, rehabilitation centers, and hospitals in the United States.

The complaint alleges that throughout the Class Period, Defendants failed to disclose that (1) Healthcare Services Group was strategically rounding its quarterly earnings per share (“EPS”) upward for more than a decade, thus misrepresenting the Company’s financial condition throughout the Class Period; (2) the Securities and Exchange Commission (“SEC”) had written to the Company in November 2017 to inquire into its EPS rounding practices; and (3) the SEC delivered a subpoena to the Company in March 2018 to produce documents in connection with its calculation of EPS.

On March 4, 2019, in a Form 8-K filed with the SEC, Healthcare Services Group disclosed it had received a letter in November 2017 from the SEC regarding an inquiry into the Company’s EPS calculation practices and requesting that the Company voluntarily provide certain information and documents relating to its EPS rounding and reporting practices. The Company further disclosed it also had received a subpoena in March 2018 from the SEC in connection with those matters and had been providing information and documents to the SEC.

Following those disclosures, the Company’s stock price fell $4.96 per share, or 13.14%, to close at $32.78 on March 4, 2019.

About Lieff Cabraser

Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.

The National Law Journal has recognized Lieff Cabraser as one of the nation’s top plaintiffs’ law firms for fourteen years. In compiling the list, the Journal examines recent verdicts and settlements and looked for firms “representing the best qualities of the plaintiffs’ bar and that demonstrated unusual dedication and creativity.” Law360 has selected Lieff Cabraser as one of the Top 50 law firms nationwide for litigation, highlighting our firm’s “laser focus” and noting that our firm routinely finds itself “facing off against some of the largest and strongest defense law firms in the world.” In 2016, Benchmark Litigation named Lieff Cabraser one of the “Top 10 Plaintiffs’ Firms in America.”

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Source/Contact for Media Inquiries Only

Sharon M. Lee
Lieff Cabraser Heimann & Bernstein, LLP
Telephone: 1-800-541-7358