Regulators recently approved an order prohibiting publicly traded radiology firm Akumin’s management from trading in the company’s stock.
The Plantation, Florida-based firm—with offices in Toronto—requested the “cease trade order” earlier this month after it failed to hit a key financial filing deadline. Akumin had scheduled its second quarter earnings call for Aug. 16. But it canceled the day before, with management and auditor Ernst & Young needing more time to analyze and prepare financial reports.
Akumin said the Ontario Securities Commission order will remain in place until two business days after it files the required documents, restricting its CEO and chief financial officer from trading shares. The directive, however, does not impact other shareholders’ ability to trade Akumin stock.
Additional information sought by auditors pertains to credit losses against accounts receivable, which were recorded in previous years, according to an Aug. 23 announcement. Akumin said it expects to file the documents by Oct. 15, which is within 60 days of the original filing deadline.
Meanwhile, a Los Angeles-based law firm said earlier this month that it’s launching an investigation into the delay on behalf of investors, alleging Akumin’s actions may have violated federal securities laws. The company currently operates 138 imaging centers across eight states and is proposing to acquire Alliance Healthcare Services for $820 million.
Marty Stempniak has covered healthcare since 2012, with his byline appearing in the American Hospital Association's member magazine, Modern Healthcare and McKnight's. Prior to that, he wrote about village government and local business for his hometown newspaper in Oak Park, Illinois. He won a Peter Lisagor and Gold EXCEL awards in 2017 for his coverage of the opioid epidemic.