Franklin, Tenn.-based Community Health Systems and the company's top executives are accused of misleading investors with an accounting change, according to Nashville Public Radio.
In a lawsuit filed Aug. 12, a shareholder seeking class-action status alleges CHS waited too long to disclose the negative effects of a new method to account for unpaid hospital bills. The company warned that the accounting change would lead to lost profits before reporting earnings for the end of 2017, but it was allegedly obligated to issue the warning sooner.
CHS' stock fell nearly 17 percent within one day of issuing the warning, and its stock price has continued to decline, according to Nashville Public Radio.
CHS also faces an $891 million class-action lawsuit alleging the company made misleading statements that resulted in artificially inflated prices for the company's common stock.
A spokesperson for CHS told Nashville Public Radio that both lawsuits are "without merit," and it will "vigorously defend" itself.
Access the full Nashville Public Radio article here.
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