Shareholder rights law firm Robbins LLP is investigating Cano Health, Inc. (NYSE: CANO) and its officers and directors to determine whether they breached their fiduciary duties and violated securities laws in relation to restating Cano's financials for year ended December 31, 2021. Cano provides primary care medical services to its members in the U.S. and Puerto Rico.
If you would like more information about our investigation of Cano Health, Inc.'s misconduct, click here.
What is this Case About: According to a complaint filed against Cano, on June 3, 2021, Jaws Acquisition Corp. consummated a merger with Primary Care (ITC) Intermediate Holdings, LLC, whereby Jaws changed its name to Cano Health, Inc. and began to provide primary care medical services.
On February 28, 2022, Cano announced "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." Cano advised that "in the course of finalizing its audit of the financial statements for the year ended December 31, 2021, the Company and its independent auditor … identified certain potential non-cash adjustments to account for revenue recognition under accounting standard ASC 606." Specifically, Cano advised that “[t]he adjustments relate to how and when the Company 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's Class A common stock price fell over 6% on February 28, 2022.
When the Company filed its annual report for the quarter and year ended December 31, 2021, it "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.]” For example, the 2021 10-K reported that, as restated, capitated revenue decreased 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.
Next Steps: If you acquired shares of Cano Health, Inc. (CANO) between May 18, 2020 and February 25, 2022, you have legal options. Contact us for more information.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
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About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. To be notified if a class action against Cano Health, Inc. settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.
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