NEW YORK, Sept. 13, 2016 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Quorum Health Corporation (“Quorum Health” or the “Company”) (NYSE:QHC) in the United States District Court for the Middle District of Tennessee on behalf of purchasers of Quorum Health common stock in connection with (1) the Company’s spinoff from Community Health Systems, Inc. (“CHS”) effective on or about April 29, 2016; and/or (2) on the open market between May 2, 2016 and August 10, 2016, inclusive (the “Class Period”), seeking to pursue remedies under the Securities Exchange Act of 1934 (the “Exchange Act”).

According to the Complaint, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies.  Specifically, the Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (i) a number of Quorum Health’s hospitals were underperforming at the time of the spin-off from CHS; (ii) various other indicators of impairment existed at the time of Quorum Health’s spin-off from CHS; (iii) Quorum Health disregarded and/or failed to advise investors of the foregoing issues; and (iv) as a result of the foregoing, Quorum Health’s public statements were materially false and misleading at all relevant times.

On August 10, 2016, Quorum Health issued a press release announcing the Company’s financial and operating results for the three months ended June 30, 2016.  In the press release, Quorum Health reported a substantial net loss and an operating loss for the quarter.  According to the Complaint, Defendants blamed the large operating loss on the $250.4 million in impairment charges Quorum Health had taken in the quarter, including $45.4 million to reduce certain long-lived asset values in property, equipment and software; $5 million in goodwill based on management’s decision to divest certain hospitals; and $200 million related to the carryover allocation of goodwill at the time of the spin-off from CHS.

On this news, Quorum’s share price fell $4.99, or 49.8%, to close at $5.03 on August 11, 2016.

If you wish to serve as lead plaintiff, you must move the Court no later than November 8, 2016.  A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

Please visit our website at http://www.gme-law.com for more information about the firm.