A class action lawsuit has ben filed in the United States District Court for the Middle District of Florida on behalf of purchasers (the “Class”) of Health Management Associates, Inc. (NYSE: HMA) common stock between July 27, 2009 through January 9, 2012 (the “Class Period”).
The lawsuit alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the SEC. The complaint asserts that HMA, its Chief Executive Officer, and its current and former Chief Financial Officers made materially false and misleading statements during the Class Period.
Throughout the Class Period, Defendants repeatedly touted HMA's strong financial performance and growth, its increase in hospital admission rates, and its compliance with all applicable laws and regulations. However, on August 3, 2011, Defendants announced that the U.S. Department of Health and Human Services had issued a subpoena requesting “information on [HMA's] physician referrals as well as ownership and management at our whole-hospital physician joint ventures, among other items.” On this news, shares of HMA common stock fell by $0.80, to close at $7.97 per share.
Then, on January 9, 2012, an analyst from CRT Capital Group issued a report stating that HMA's former compliance director, Paul Meyer, filed a lawsuit against the Company for violation of Florida's Private Sector Whistleblower's Act. In addition to being HMA's Director of Compliance at the time of his wrongful termination, Meyer was a thirty-year veteran of the FBI, Healthcare Fraud Unit, in Miami. On this news, shares of Health Management dropped another $0.53 per share, falling from $7.49 per share to $6.96.
If you are a current shareholder and/or purchased stock between July 27, 2009 through January 9, 2012, and would like to discuss your options of exercising your rights as a shareholder, please contact us.
Please submit the following information so we can determine if you qualify for the suit. If you don't know all the specific details, partial information is also acceptable.