NEW YORK, Nov. 14, 2014 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Hanger, Inc. ("Hanger" or the "Company") ( NYSE: HGR). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 237.
The investigation concerns whether Hanger and certain of its officers and/or directors have violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
On August 5, 2014, after the close of the market, the Company announced that it was delaying the release of its second quarter fiscal year 2014 earnings. On August 7, 2014, the Company reported that earnings per share had plummeted 23.1% from $0.52 per share to $0.40 per share from the same quarter in 2013, and that its estimate of earnings per share for fiscal year 2014 had dropped from $2.01 to $2.11 to $1.60 to $1.70. The Company attributed this sharp decline to the severe pressure placed on the Company due to the increase in Recovery Audit Contractor ("RAC") audits of its reimbursement claims. The Company further announced that the Company's accounts receivable over 120 days had dramatically increased by $14 million year over-year due to the impact of increased RAC audits; that the Company's operating costs had increased $8 million for the year, $4.2 million of which was attributable to an increase in bad debt; and that the Company's same-stores sales growth had contracted by 1.5%, similarly attributable to a slow-down in authorization and payments.
On this news, shares of Hanger fell $7.39 per share, or more than 24.74%, to $22.48 per share on intraday trading on August 8, 2014.
The Pomerantz Firm, with offices in New York, Chicago, San Diego and Florida, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
Robert S. Willoughby
SOURCE Pomerantz LLP