An investigation on behalf of investors of Premier, Inc. (NASDAQ: PINC) shares over potential securities laws violations by Premier, Inc. and certain of its directors and officers in connection with certain financial statements was announced.

The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Premier, Inc. (NASDAQ: PINC) concerning whether a series of statements by Premier, Inc. regarding its business, its prospects and its operations were materially false and misleading at the time they were made.

Charlotte, NC based Premier, Inc., together with its subsidiaries, operates as a healthcare improvement company in the United States. Premier, Inc. reported that its Total Revenue rose from over $1.45 billion for the 12 months period that ended on June 30, 2017 to over $1.66 billion for the 12 months period that ended on June 30, 2018, and that its Net Income over those respective time periods declined from $113.42 million to $33.3 million.

On September 25, 2019, a report was issued about Premier, Inc stating that 'due to a unique pre-IPO restructuring agreement, [Premier] is temporarily generating twice the earnings which its business model can sustain organically.' Noting that the contracts between Premier and its 'member owner' hospitals were nearing expiration, the report asserted that 'with most member owner equity now having vested, hospitals with expiring contracts are far less incented to remain with Premier at sub-market shareback rates' making them more likely to opt out rather than renew their contracts, which 'would cause Premier to underperform FY22-23 consensus revenue by >26% and EBITDA by >50%.'