RADNOR, Pa., July 8 /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 Tennessee on behalf of all purchasers of securities of Healthways Inc. (Nasdaq: HWAY) ("Healthways" or the "Company") from October 17, 2007 through February 26, 2008, 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 David M. Promisloff, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at firstname.lastname@example.org.
The Complaint charges Healthways and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Healthways is a health and care support provider. 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 not meeting certain requirements, including the savings target, set by the Centers for Medicare & Medicaid Services ("CMS"); (2) that due to this fact, it would be necessary for the Company to reimburse CMS for fees it had received through the Medicare Health Support pilot program ("MHS"); (3) that the Company was vulnerable to losing two key existing contracts; (4) that due to a reduced need for the Company's services, it was experiencing slower enrollment in an existing contract; (5) that the Company lacked adequate internal and financial controls; and (6) that, as a result of the foregoing, the Company's statements about its financial well-being and future business prospects were lacking in any reasonable basis when made.
Healthways was involved in the MHS program, which was created by CMS to help Medicare and its beneficiaries save money, as well as to improve the quality of care for patients. CMS set savings and satisfaction targets for the companies involved in the pilot program, which would determine whether CMS expanded the program to the second phase. If a company did not meet the savings targets, it would have to reimburse CMS for the fees it had received from the program. On February 26, 2008, the Company shocked investors when it announced that it was lowering its financial guidance for fiscal 2008. Specifically, the Company reduced its revenue guidance to between $720 million and $740 million (from between $782 million and $815 million), and reduced its earnings guidance to between $1.50 and $1.55 per share (from a previous $1.77 to $1.86 per share). The Company stated that the new guidance was a result of slower-than-projected enrollment in the new MHS program, and the fact that two previously anticipated contracts would not likely materialize during the fiscal year.
Upon the release of this news, the Company's shares fell $13.42 per share, or 29.59 percent, to close on February 26, 2008 at $31.93 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 August 4, 2008, 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. Your ability to share
in any recovery is not, however, affected by the decision whether or not to
serve as a lead plaintiff. Any member of the purported class may move the
court to serve as lead plaintiff through counsel of their choice, or may
choose to do nothing and remain an absent class member.
CONTACT: Schiffrin Barroway Topaz & Kessler, LLP
Darren J. Check, Esq.
David M. Promisloff, 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 email@example.com
|SOURCE Schiffrin Barroway Topaz & Kessler, LLP|
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