Oct 13 (Reuters) - Quorum Health Corp shareholder Q Investments LP urged the hospital operator’s board to investigate what it called “possible fraudulent disclosure” related to the company’s spinoff from Community Health Systems Inc in April.
Quorum’s shares were flat in morning trading on Thursday, while Community Health were up marginally.
Q Investments, in a letter sent to Quorum’s board on Wednesday, called for an independent investigation of both management teams.
Quorum’s shares plunged 59 percent on Aug. 11 after the company’s second-quarter revenue missed market expectations.
Q Investments highlighted “potentially unlawful behavior” surrounding the initial guidance used to market Quorum to new investors.
Quorum and Community Health could not be immediately reached for comment.
The private investment firm said it owned $50 million in bonds and 1.3 million shares of Quorum as of June.
Reporting by Natalie Grover in Bengaluru; Editing by Sriraj Kalluvila