S&P: Cross Country unaffected

Standard & Poor's said Monday that the ratings and outlook on Cross Country Healthcare Inc. (BB-/stable/--) would not be affected by a class action lawsuit against the company.

A complaint filed on behalf of investors alleges that Cross Country withheld information from them about requests for temporary nurses by hospital clients, specifically that orders were canceled shortly after they were placed with the company. Cross Country is also accused of overstating the demand for its temporary nurse staffing services.

While S&P said it does not believe that the lawsuit is significant enough to merit a rating or outlook change at this time, the agency said it does remain concerned about the weakness in the demand for temporary nurse staffing services, the cancellation of orders from hospital clients, and the insufficient supply of temporary nurses throughout the industry.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.