LOS ANGELES, April 15, 2022 (GLOBE NEWSWIRE) — Glancy Prongay & Murray LLP (“GPM”) reminds investors of the upcoming May 17, 2022 deadline to file a motion by lead plaintiff in the class action lawsuit filed on behalf of investors who purchased or otherwise acquired Cano Health, Inc. (“Cano” or the “Company”) f/k/a Jaws Acquisition Corp. (“Jaws”) (NYSE: CANO) securities between May 18, 2020 and February 25, 2022inclusive (the “Class Period”).
If you have suffered a loss on your Cano investments or would like to inquire about possible claims to recover your loss under federal securities laws, you may submit your contact information at www.glancylaw.com/ cases/cano-health-inc/. You may also contact Charles H. Linehan of GPM at 310-201-9150, toll-free at 888-773-9224, or by email at firstname.lastname@example.org to learn more about your rights.
On June 3, 2021, Jaws, a special purpose acquisition company, entered into a business combination with Primary Care (ITC) Intermediate Holdings, LLC, and the combined company was renamed Cano (the “Business Combination”) ).
On February 28, 2022, Cano announced that it would delay the release of its fourth quarter and full year 2021 financial results due to the results of a recent internal audit. The audit “identified certain non-cash adjustments to reflect revenue recognition under ASC 606 accounting standard. . related to Medicare risk adjustments.
On this news, Cano’s Class A common shares fell $0.32, or 6.2%, to close at $4.87 per share on Feb. 28, 2022, hurting investors.
Then, on March 14, 2022, Cano filed its annual report for fiscal year 2021, stating that “[t]Correction of timing of revenue recognition under ASC 606 resulted in adjustments to capitation revenue, direct patient expenses, accounts receivable, net of unpaid service provider costs, and accounts payable and accrued liabilities to pay. Accordingly, the Company has restated its financial statements for each of the quarterly periods of fiscal 2021, including to note that capitalization income decreased by 2.13% for the three months ended March 31, 2021; 13.11% for the three months ended June 30, 2021; and 5.58% for the three months ended September 30, 2021.
The Complaint alleges that the Defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) Cano overstated its due diligence efforts and expertise in acquisition of target companies; (2) as a result, Cano performed inadequate due diligence to determine whether the Company, post-business combination, could properly account for the timing of revenue recognition as prescribed by ASC 606, particularly with respect to relates to Medicare risk adjustments; (3) as a result, the Company misreported its capitation revenues, direct patient expenses, accounts receivable, net of unpaid service provider costs, and accounts payable and accrued liabilities; (4) as a result, the Company was at increased risk of not filing one or more of its periodic financial reports on time; and (5) as a result of the foregoing, the defendants’ public statements were materially false and misleading at all relevant times.
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If you purchased or otherwise acquired securities of Cano during the Class Period, you may sue the Court no later than May 17, 2022 to seek appointment as lead plaintiff in this putative class action. To be a class member, you do not need to take any action at this time; you can retain the services of a lawyer of your choice or do nothing and remain an absentee member of the class action. If you would like to know more about this class action, or if you have any questions about this announcement or your rights or interests in the pending class action, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, CA 90067 at 310-201-9150, toll free at 888-773-9224, by email at email@example.com, or visit our website at www.glancylaw.com. If requesting by email, please include your mailing address, phone number and number of shares purchased.
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Glancy Prongay & Murray LLP, Los Angeles
Charles Linehan, 310-201-9150 or 888-773-9224