Updates
May 2, 2022: This class proceeding is at this time stayed in accordance with the Order of the Honourable Justice Akbarali of the Ontario Superior Court of Justice on carriage of the class proceeding, dated April 27, 2022.
Summary
This is a securities class proceeding against Akumin Inc. (TSE: AKU, NASDAQ: AKU) and certain of its directors and officers. This class action arises out of the Defendants’ alleged misrepresentations in several of Akumin’s financial statements, which failed to present fairly, in all material respects, Akumin’s financial position, the results of its operations and/or its cash flows.
On August 16, 2021, Akumin reported that it would delay filing its financial disclosures for the second quarter of 2021 as its management and external auditors had determined that additional information and analysis were necessary to complete the preparation and review of those financial statements. According to the report, the additional information and analysis related to potential additional credit losses with respect to prior years.
On October 12, 2021, Akumin reported that it had identified accounting errors in its financial statements for current and past reporting periods affecting its accounts receivable. As a result, Akumin disclosed that it was required to restate and make other adjustments to its (i) annual financial statements for the period ended December 31, 2020 and December 31, 2019; and (ii) interim financial statements for the period ended March 31, 2021, in each case together with their related management's discussion and analysis. According to the report, Akumin expects that the changes would result in an accounts receivable balance as at June 30, 2021 of between $65.0 million and $70.0 million as compared to Akumin's previously reported March 31, 2021 accounts receivable balance of $95.9 million.
On these announcements, the value or market price of Akumin's securities plummeted.
For further information, please contact Sage Nematollahi at [email protected].
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