Hagens Berman Investigates Health Management Associates, Inc.

BERKELEY, Calif., Jan. 31, 2012 /PRNewswire/ -- Investor-rights law firm Hagens Berman today announced it is investigating Health Management Associates Inc., (NYSE: HMA) regarding alleged violations of the securities laws.

A class-action lawsuit was filed in the United States District Court for the Middle District of Florida on Jan. 26, 2012. The complaint claims that HMA and its most senior officers made false and misleading statements about HMA's financial performance to investors.

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 sending an email to [email protected] or by visiting www.hbsslaw.com/HMA.

The deadline to move the court for lead plaintiff status is March 26, 2012.

According to the lawsuit, 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.

Yet, on Aug. 3, 2011, the company announced that the U.S. Department of Health and Human Services (DHHS) had issued a subpoena requesting information regarding HMA's physician referrals. After the announcement, shares of HMA common stock decreased by $0.80, to a close at $7.97 per share.

Several months later on Jan. 9, 2012, an analyst from CRT Capital Group reported that HMA's former compliance director, Paul Meyer, had filed a lawsuit against HMA under Florida's Private Sector Whistleblower's Act. Following this report, shares of Health Management fell an additional $0.53 per share, dropping from $7.49 to $6.96 per share.

Meyer reportedly claimed that he was unlawfully terminated after he reported what he believed to be Medicare fraud, including fraudulent billing, occurring at HMA facilities.

"We are investigating HMA's disclosures to investors during the class period," said Reed Kathrein, partner at Hagens Berman. "If the company failed to disclose facts that could have a material impact on the stock price, it should be held responsible for investors' losses."

About Hagens Berman

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, [email protected]

SOURCE Hagens Berman Sobol Shapiro LLP