Robbins Geller Rudman & Dowd LLP announces that purchasers of Cano Health, Inc. f/k/a Jaws Acquisition Corp. (NYSE: CANO; CANO/WS; JWS; JWS.U; JWS WS) securities between May 18, 2020 and February 25, 2022, inclusive (the “Class Period”) have until May 17, 2022 to seek appointment as lead plaintiff in Gonzalez v. Cano Health, Inc. f/k/a Jaws Acquisition Corp., No. 22-cv-20827 (S.D. Fla.). Commenced on March 18, 2022, the Cano Health class action lawsuit charges Cano Health and certain of its top executive officers with violations of the Securities Exchange Act of 1934.
If you suffered significant losses and wish to serve as lead plaintiff of the Cano Health class action lawsuit, please provide your information by clicking here. You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at jsanchez@rgrdlaw.com. Lead plaintiff motions for the Cano Health class action lawsuit must be filed with the court no later than May 17, 2022.
CASE ALLEGATIONS: Cano Health provides primary care medical services to its members in the United States and Puerto Rico. Cano Health used to be a special purpose acquisition company (“SPAC” or blank-check company) and operated under the name “Jaws Acquisition Corp.” On June 3, 2021, Jaws consummated a merger with Primary Care (ITC) Intermediate Holdings, LLC, changed its name to “Cano Health, Inc.” and began to provide primary care medical services.
The Cano Health class action lawsuit alleges that, throughout the Class Period, defendants made false and misleading statements and failed to disclose that: (i) Cano Health overstated its due diligence efforts and expertise with respect to acquiring target businesses; (ii) accordingly, Cano Health performed inadequate due diligence into whether Cano Health, post-business combination, could properly account for the timing of revenue recognition as prescribed by ASC 606, particularly with respect to Medicare risk adjustments; (iii) as a result, Cano Health misstated its capitated revenue, direct patient expense, accounts receivable, net of unpaid service provider costs, and accounts payable and accrued expenses; (iv) accordingly, Cano Health was at an increased risk of failing to timely file one or more of its periodic financial reports; and (v) as a result, Cano Health’s public statements were materially false and misleading at all relevant times.
On February 28, 2022, Cano Health issued a press release “announc[ing] it will delay its fourth quarter and full year 2021 earnings release, conference call and 2022 guidance updates, previously scheduled for Monday, February 28, 2022.” In explaining the delay, Cano advised that “in the course of finalizing its audit of the financial statements for the year ended December 31, 2021, [Cano Health] and its independent auditor . . . identified certain potential non-cash adjustments to account for revenue recognition under accounting standard ASC 606.” Specifically, Cano Health advised that “[t]he adjustments relate to how and when [Cano Health] accrues revenue related to Medicare Risk Adjustments” and that “[t]he adjustments are expected to impact the timing of revenue recognition, by delaying recognition of certain amounts related to the Medicare Risk Adjustment to subsequent periods.” On this news, Cano Health’s Class A common stock price fell by more than 6%, damaging investors.
On March 14, 2022, Cano Health filed its annual report for the quarter and year ended December 31, 2021 (the “2021 10-K”). That filing stated, among other things, that “[t]he correction in the timing of revenue recognition under ASC 606 resulted in adjustments to capitated revenue, direct patient expense, accounts receivable, net of unpaid service provider costs, and accounts payable and accrued expenses,” and that Cano Health therefore “restated its financial statements for each of the quarterly periods ended March 31, 2021, June 30, 2021 and September 30, 2021 in the [2021 10-K].”
Robbins Geller has launched a dedicated SPAC Task Force to protect investors in blank check companies and seek redress for corporate malfeasance. Comprised of experienced litigators, investigators, and forensic accountants, the SPAC Task Force is dedicated to rooting out and prosecuting fraud on behalf of injured SPAC investors. The rise in blank check financing poses unique risks to investors. Robbins Geller’s SPAC Task Force represents the vanguard of ensuring integrity, honesty, and justice in this rapidly developing investment arena.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Cano Health securities during the Class Period to seek appointment as lead plaintiff in the Cano Health class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the class action lawsuit. An investor’s ability to share in any potential future recovery of the class action lawsuit is not dependent upon serving as lead plaintiff.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: Robbins Geller Rudman & Dowd LLP is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases. The Firm is ranked #1 on the 2021 ISS Securities Class Action Services Top 50 Report for recovering nearly $2 billion for investors last year alone – more than triple the amount recovered by any other plaintiffs’ firm. With 200 lawyers in 9 offices, Robbins Geller’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. Please visit http://www.rgrdlaw.com for more information.
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Contacts
Robbins Geller Rudman & Dowd LLP
655 W. Broadway, San Diego, CA 92101
J.C. Sanchez, 800-449-4900
jsanchez@rgrdlaw.com
