Nobilis Health Fights Off Investor Bid to Revive Securities Suit

Nobilis Health Corp. remains free of accusations it made misleading statements about its financial condition because investors failed to show it acted with the required mental state, the Fifth Circuit said in an unpublished opinion.

Investors say the health services provider fraudulently misrepresented its financial condition in order to inflate its stock price. The district court correctly determined that their complaint lacked sufficient allegations that Nobilis acted knowingly or severely recklessly, the U.S. Court of Appeals for the Fifth Circuit said.

The would-be class argued Nobilis—which filed for bankruptcy in 2019—"struggled financially but deceptively concealed its declining position with ...