Hagens Berman Continues HMA Investigation, Reminds Investors 26 Days Remain Before Deadline
BERKELEY, Calif., Feb. 29, 2012 /PRNewswire/ -- Hagens Berman is continuing its investigation into Health Management Associates Inc., (NYSE: HMA) for alleged violations of securities laws, and wishes to remind investors that the deadline to move for lead plaintiff is March 26, 2012.
Investors who purchased shares of HMA common stock between July 27, 2009, and Jan. 9, 2012, (the "class period") are encouraged to contact Hagens Berman partner Reed R. Kathrein by calling (510) 725-3000. Mr. Kathrein is leading Hagens Berman's investigation. Investors can also contact Mr. Kathrein online by emailing HMA@hbsslaw.com or by visiting www.hbsslaw.com/HMA.
On Jan. 26, 2012, a lawsuit was filed in the United States District Court for the Middle District of Florida alleging that HMA and its executives knowingly issued false and misleading statements to shareholders about the company's financial performance.
The complaint alleges that HMA, its Chief Executive Officer, as well as its current and former Chief Financial Officers reported strong financial performance and growth and increased hospital admittance during the class period.
However, on Aug. 3, 2011, HMA announced that the U.S. Department of Health and Human Services (DHHS) had issued a subpoena requesting information regarding HMA's physician referrals. Following this announcement, shares of HMA common stock fell by $0.80, to close at $7.97 per share.
Then, on Jan. 9, 2012, an analyst from CRT Capital Group reported that a lawsuit had been filed against HMA under Florida's Private Sector Whistleblower's Act by Paul Meyer, the company's former compliance director.
Meyer reportedly claimed that he was wrongfully terminated after reporting what he suspected to be Medicare fraud, including fraudulent billing, occurring at HMA facilities. On this news, HMA stock fell an additional $0.53, trading at $6.93 per share.
The stock has continued to trade below class period highs, closing at $7.39 per share on February 29, 2012.
Persons with knowledge that may help the investigation are encouraged to contact the firm. The SEC recently finalized new rules as part of its implementation of the whistleblower provisions in the Dodd-Frank Wall Street Reform Bill. The new rules protect whistleblowers from employer retaliation and allow the SEC to reward those who provide information leading to a successful enforcement with up to 30 percent of the recovery.
Hagens Berman Sobol Shapiro LLP is an investor-rights class-action law firm with offices in 10 cities. The firm represents whistleblowers, workers and consumers in complex litigation. More about the law firm and its successes can be found at www.hbsslaw.com. The firm's securities law blog is at www.meaningfuldisclosure.com.
Media Contact: Mark Firmani, Firmani + Associates, (206) 443 9357, Mark@firmani.com
SOURCE Hagens Berman Sobol Shapiro LLP