Accretive Health Inc. (ACHI)
Confirmed, Undisclosed SEC Investigation
Maintained on Watch List
Our Take: Since giving a pending-restatement update in Mar-2014, that appears to have now stalled, ACHI has experienced significant changes in the executive suite. The CEO, CFO, and CAO all departed. In addition, we recently confirmed an SEC investigation that remains undisclosed. We are puzzled by the lack of urgency felt by the new management team to get the SEC probe out there. They have a rare opportunity to create trust with investors that, so far, they are squandering.
The SEC investigates pending and actual restatements all the time so the existence of an investigation doesn't really surprise us given this company's history. The "substantial progress" on its restatement reported by the company in March has likely even been slowed by the SEC probe.
Without any of the clever lawyer-approved word games that typically accompany disclosures of SEC activity, we suggest ACHI management should tell investors about the SEC probe along with an update on the restatement soon as possible. It's time.
From the Probes Reporter Database
- 22-Jul-2014: In response to our administrative appeal, the SEC confirmed an on-going enforcement proceeding for this company. No disclosures of SEC investigative activity were found in the past two years of this company’s SEC filings.
- 10-Jul-2014: The SEC cites the "law enforcement exemption" of the FOIA as basis to deny the public access to the detailed records we sought on this company. As a matter of law, they are acknowledging some sort of investigative activity. We filed an administrative appeal to challenge this denial.
- 31-Jul-2013: SEC indicates no recent investigative activity found.
No documents were provided to us on this company for any of our searches.
