INVESTOR ALERT: Law Offices of Howard G. Smith Announces the Filing of a Securities Class Action on Behalf of Healthcare Services Group, Inc. Investors

Business Wire

BENSALEM, Pa.--(BUSINESS WIRE)-- Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Healthcare Services Group, Inc. (“Healthcare Services” or the “Company”) (NASDAQ: HCSG) securities between April 11, 2017 and March 4, 2019, inclusive (the “Class Period”). Healthcare Services investors have until May 21, 2019 to file a lead plaintiff motion.

Investors suffering losses on their Healthcare Services investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to [email protected].

On March 4, 2019, the Company disclosed that the Securities and Exchange Commission (“SEC”) had sent a letter in November 2017 and a subpoena in March 2018 regarding the Company’s earnings per share calculation practices. Additionally, during the fourth quarter of 2018, the Company began an internal investigation into the matters related to the SEC subpoena. As a result, the Company would not be able to timely file its annual report for the period ended December 31, 2018. On this news, the Company’s share price fell $4.96 per share, or over 13%, to close at $32.78 per share on March 4, 2019, thereby injuring investors.

The Complaint filed in this class action alleges that Defendants made materially false and misleading statements and/or failed to disclose that: (a) defendant either knew or was reckless in not knowing that the Company had been accused of strategically rounding quarterly earnings per share, and therefore investors could not rely upon the Company's track record without conducting a thorough investigation into the allegations; (b) Defendants concealed that the SEC had written to the Company in November 2017 to inquire into the Company's earnings per share rounding practices; and (c) the Company concealed that the SEC delivered a subpoena to the Company in March 2018 demanding the Company produce documents in connection with how it calculated earnings per share.

If you purchased shares of Healthcare Services, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to [email protected], or visit our website at www.howardsmithlaw.com.

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