Grabar Law Office Files Shareholder Derivative Action Against Officers of Healthcare Services Group, Inc.

Grabar Law Office has filed a derivative action brought on behalf of the public stockholders of Healthcare Services Group, Inc. (“HCSG” or the “Company”) against the Company’s current CEO and CFO (“Individual Defendants”).

According to the Complaint, HCSG’s CEO and CFO engaged in a long-term scheme to make it appear that the Company met or exceeded analysts’ consensus estimates for the Company’s earnings per share (“EPS), a key financial metric relied upon by investors as an indicator of a company’s profitability.

As alleged in the Complaint, the Individual Defendants’ wrongful conduct constitutes a breach of the fiduciary duties they owed to the Company and has forced HCSG to incur millions of dollars in costs related to the SEC investigation and the internal investigation, as well as costs incurred in defending the securities class action. In addition, the Individual Defendants’ breach of fiduciary duties has caused reputational harm to the Company and has exposed HCSG to potential sanctions and penalties by the SEC.

To learn more about this action, contact us today!

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