Cano Health Execs Get Investor’s Revenue Accounting Suit Tossed

A Cano Health Inc. investor can’t proceed with claims that the physician group committed securities fraud by submitting financial reports with improperly recognized revenue, and by misrepresenting its risk assessment process, a federal court ruled.

Shareholder Alberto Gonzalez didn’t adequately allege that Cano executives made false statements about the company’s Medicare Risk Adjustment processes, Judge Kathleen M. Williams said Oct. 4 for the US District Court for the Southern District of Florida.

And although Gonzalez did clear the bar in pleading that a number of financial statements were false because of the timing of revenue accrual, he fell short of ...