The investigation stems from a disclosure CHS made in February 2018, when it released its financial results for 2017. At that time, CHS disclosed that it previously understated contractual allowances and bad debt provisions by $591 million, according to KSF. The company’s net operating revenues were down nearly 17 percent year over year in 2017.
After CHS made the disclosure, some of its executives were hit with a securities class-action lawsuit. KSF’s investigation is focused on whether CHS’ officers or directors breached their fiduciary duties to shareholders or otherwise violated state or federal laws.
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