Robbins Arroyo LLP: U.S. Physical Therapy, Inc. (USPH) Misled Shareholders According to a Recently Filed Class Action


SAN DIEGO & HOUSTON–()–Shareholder rights law firm Robbins Arroyo LLP announces
that a class action complaint was filed against U.S. Physical Therapy,
Inc. (NYSE: USPH) (“USPH”) in the U.S. District Court for the Southern
District of New York. The complaint is brought on behalf of all
purchasers of USPH securities between May 8, 2014 and March 16, 2017,
for alleged violations of the Securities Exchange Act of 1934 by USPH’s
officers and directors. USPH operates outpatient physical and
occupational therapy clinics for pre- and post-operative care for a
variety of orthopedic-related disorders and sports-related injuries,
rehabilitation of injured workers, and preventative care.

View this information on the law firm’s Shareholder Rights Blog: www.robbinsarroyo.com/shareholders-rights-blog/u-s-physical-therapy-inc

U.S. Physical Therapy Accused of Failing to Disclose Material
Weakness in its Internal Controls

According to the complaint, in a series of filings with the U.S.
Securities Exchange Commission, USPH officials attested to the accuracy
of the company’s financial statements, the effectiveness of the internal
controls, and the disclosure of all fraud. On August 7, 2014, USPH
issued a press release stating that it was raising its 2014 earnings
guidance, net income had increased compared to the same period in the
prior year, and net revenues had increased. In commenting on these
results, Chris Reading, USPH’s Chief Executive Officer, stated, “Our
Fit2WRK group continues to land terrific employer accounts which have
assisted us in further improving our payor base while also driving new
customers into our many partnerships around the country.” However, the
complaint alleges that USPH officials failed to disclose that the
company had a material weakness in its internal controls over accounting
and financial reporting, that the company’s improper accounting resulted
in violations of Generally Accepted Accounting Principles, and as a
result, the company’s financial statements were inaccurate and
unreliable.

On March 16, 2017, USPH announced that its historical accounting for
redeemable non-controlling interests of acquired partnerships was
incorrect, and that the error would result in unreliable financial
statements for the years ended December 31, 2015 and 2014, all quarters
within 2014 and 2015, and the first three quarters of 2016. USPH further
disclosed that it would restate certain figures for the affected
periods, and that it would need to file a Notification of Late Filing
for its Annual Report on Form 10-K for the year ended December 31, 2016,
which it expected to file on or before March 31, 2017. On this news,
USPH’s stock fell $3.85 per share, or 5.2%, to close at $69.90 per share
on March 16, 2017.

U.S. Physical Therapy Shareholders Have Legal Options

Concerned shareholders who would like more information about their
rights and potential remedies can contact attorney Leonid Kandinov at
(800) 350-6003, LKandinov@robbinsarroyo.com,
or via the shareholder
information form
on the firm’s website.

Robbins Arroyo LLP is a nationally recognized leader in shareholder
rights law. The firm represents individual and institutional investors
in shareholder derivative and securities class action lawsuits, and has
helped its clients realize more than $1 billion of value for themselves
and the companies in which they have invested.

Attorney Advertising. Past results do not guarantee a similar outcome.



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