SAN FRANCISCO--(BUSINESS WIRE)-- (February 2, 2012)--The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces that a class action lawsuit has been brought on behalf of all purchasers of the common stock of Health Management Associates, Inc. (“HMA” or the “Company”) (NYSE:HMA) between July 27, 2009 and January 9, 2012, inclusive (the “Class Period”).
If you purchased HMA common stock during the Class Period, you may move the Court for appointment as lead plaintiff by no later than March 26, 2012. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the action will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.
Background on the HMA Securities Class Litigation
The action is brought against HMA and certain of its senior executives for violations of the Securities Exchange Act of 1934. HMA is a Naples, Florida-based operator of acute-care hospitals and other healthcare facilities in non-urban areas throughout the United States.
The complaint alleges that during the Class Period, defendants misrepresented and omitted material information about HMA’s operations and financial condition. Specifically, defendants failed to disclose that HMA fraudulently overbilled Medicare through the improper admission of patients as inpatients at HMA hospitals even though the patients did not meet the inpatient admission standards under Medicare.
On August 3, 2011, HMA disclosed that it had received two subpoenas from the U.S. Department of Health and Human Services’ Office of the Inspector General (“OIG”). Following this announcement, the price of HMA shares fell $0.80 per share, or approximately 9 percent, to close at $7.97 per share on August 4, 2011, on high trading volume.
On October 25, 2011, HMA disclosed additional details regarding the OIG’s investigation and stated that the subpoenas it received “apply system-wide” and “may relate to investigations of alleged violations of the Anti-Kickback Statute and the False Claims Act.” HMA also disclosed that “certain of our hospitals have received requests for information from state and federal agencies.”
On January 9, 2012, an analyst for CRT Capital Group LLC wrote in a note to investors about a lawsuit filed against HMA by Paul Meyer, a former Director of Compliance at the Company and a 30-year veteran of the U.S. Federal Bureau of Investigations, who alleged that he was wrongfully terminated after repeatedly raising concerns to his superiors about fraudulent billing practices of at least four HMA hospitals. On this news, HMA shares fell $0.53, or approximately 7 percent, to close at $6.96, on very high trading volume. On the following day, HMA revealed that its General Counsel had abruptly resigned.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.
Since 2003, the National Law Journal has selected Lieff Cabraser as one of the top plaintiffs’ law firms in the nation. In compiling the list, the National Law Journal examined recent verdicts and settlements in addition to overall track records. Lieff Cabraser is one of only two plaintiffs’ law firms in the United States to receive this honor for the last nine consecutive years.
For more information about Lieff Cabraser and the firm’s representation of investors, please visit http://www.lieffcabraser.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Source/Contact for Media Inquiries Only:
Lieff Cabraser Heimann & Bernstein, LLP
Sharon M. Lee, 800-541-7358
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