R1 RCM Inc. (RCM) Investigation: Bronstein, Gewirtz & Grossman, LLC Encourages Investors to Seek Compensation for Alleged Wrongdoings
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Nov 21, 2023, 12:45 PM ET
NEW YORK, NY / ACCESSWIRE / November 21, 2023 / Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of R1 RCM Inc. ("RCM" or "the Company") (NASDAQ:RCM). Investors who purchased RCM securities are encouraged to obtain additional information and assist the investigation by visiting the firm's site: bgandg.com/rcm.
The investigation concerns whether RCM has violated federal securities laws.
On October 16, 2023, Jehoshaphat Research ("Jehoshaphat") published a short report on RCM, asserting that "RCM's revenues and profits are grossly overstated by a variety of desperate accounting measures, and . . . horrific corporate governance has allowed this to happen." Among other issues, the Jehoshaphat report described "aggressive mark-to-model revenue recognition creating most of the revenue growth in the company today, creatively deflated expenses that inflate Adjusted EBITDA by approximately 55%, potentially systematic under-reserving for customer bad debts, hidden customer acquisition costs, chronically thin free cash flow, hidden capex, and sell-side estimates for incentive fee revenues that are too high, all occurring at a company with an irresponsibly high level of debt, especially considering its grossly inflated Adjusted EBITDA number." On this news, RCM's stock price fell $1.09 per share, or 8.26%, to close at $12.11 per share on October 16, 2023.
If you are aware of any facts relating to this investigation or purchased RCM securities, you can assist this investigation by visiting the firm's site: bgandg.com/rcm. You can also contact Peretz Bronstein or his law clerk and client relations manager, Yael Nathanson of Bronstein, Gewirtz & Grossman, LLC: 332-239-2660.
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SOURCE: Bronstein, Gewirtz and Grossman, LLC
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