RADNOR, Pa., Aug. 10 /PRNewswire/ -- The following statement was issued today by the law firm of Schiffrin Barroway Topaz & Kessler, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Middle District of Florida on behalf of all common stock purchasers of Health Management Associates, Inc. (NYSE: HMA) ("Health Management" or the "Company") from January 17, 2007 to July 30, 2007, inclusive (the "Class Period").
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin Barroway Topaz & Kessler, LLP (Darren J. Check, Esq. or Richard A. Maniskas, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at email@example.com.
The Complaint charges Health Management and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Health Management, through its subsidiaries, owns and operates general acute care hospitals in "non-urban" communities primarily in the Southeast and Southwest regions of the United States. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company was experiencing a deterioration in the collectibility of its accounts receivable from uninsured patients; (2) that the Company was significantly under-reserving for bad debt expense; (3) as such, the Company would be forced to dramatically increase its provision for bad debt expense going forward, which would severely impact the Company's net earnings in subsequent quarters; (4) that as a result of the above, the Company's financial statements were materially misleading; (5) that the Company's materially misleading financial statements enabled the Company to effectuate a major recapitalization which was otherwise unattainable; (6) that the Company lacked adequate internal and financial controls; and (7) that the Company's statements about its financial well-being, earnings, and guidance were lacking in a reasonable basis when made.
On July 31, 2007, Health Management revealed that, throughout the Class Period, it had experienced deterioration in the collectibility of its accounts receivable from uninsured patients. As a result, the Company was forced to significantly increase its bad debt expense provision to 12 percent of net revenue for the Company's third and fourth quarters of 2007. Additionally, the Company announced that it had taken a $39 million charge to reflect the decline in the collectibility of its accounts receivable from uninsured patients, and had reduced its earnings guidance for fiscal year 2007 down from $0.71 - $0.81 per share to $0.45 - $0.50 per share. On the release of this news, shares of the Company's stock declined $2.59 per share, or almost 25 percent, to close on July 31, 2007 at $8.06 per share, on unusually heavy trading volume.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin Barroway Topaz & Kessler which prosecutes class actions in both state and federal courts throughout the country. Schiffrin Barroway Topaz & Kessler is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world.
For more information about Schiffrin Barroway Topaz & Kessler or to sign up to participate in this action online, please visit http://www.sbtklaw.com
If you are a member of the class described above, you may, not later than October 1, 2007, move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Schiffrin Barroway Topaz & Kessler or other counsel of your choice, to serve as your counsel in this action.
CONTACT: Schiffrin Barroway Topaz & Kessler, LLP
Darren J. Check, Esq.
Richard A. Maniskas, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll free) or 1-610-667-7706
Or by e-mail at firstname.lastname@example.org
|SOURCE Schiffrin Barroway Topaz & Kessler, LLP|
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