Hagens Berman Reminds Investors 49 Days Remain Until Lead Plaintiff Deadline in Investigation of Health Management Associates, Inc.

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Feb 06, 2012, 08:00 ET

BERKELEY, Calif., Feb. 6, 2012 /PRNewswire/ -- Hagens Berman is continuing to investigate Health Management Associates Inc., (NYSE: HMA) for alleged violations of the securities laws and reminds investors that they have until March 26, 2012, to move the court for lead plaintiff status.

On Jan. 26, 2012, a lawsuit was filed in the United States District Court for the Middle District of Florida alleging that HMA and its executives issued false and misleading statements to shareholders about the company's financial performance.

Investors who purchased shares of HMA common stock between July 27, 2009 and Jan. 9, 2012 (the "class period") are encouraged to contact Hagens Berman partner Reed R. Kathrein by calling (510) 725-3000. Mr. Kathrein is leading Hagens Berman's investigation. Investors can also contact Mr. Kathrein online by emailing [email protected] or by visiting www.hbsslaw.com/HMA.

According to the complaint, HMA, its Chief Executive Officer, as well as its current and former Chief Financial Officers reported strong financial performance and growth and increased hospital admittance during the class period.

Then, on Aug. 3, 2011, HMA announced that the U.S. Department of Health and Human Services (DHHS) had issued a subpoena requesting information regarding HMA's physician referrals. After the announcement, shares of HMA common stock fell by $0.80, to close at $7.97 per share.

On Jan. 9, 2012, an analyst from CRT Capital Group reported that a lawsuit had been filed against HMA under Florida's Private Sector Whistleblower's Act by Paul Meyer, the company's former compliance director. Following this report, shares of HMA's stock fell an additional $0.53 per share, falling from $7.49 to $6.96 per share.

Meyer reportedly claimed that he was wrongfully terminated after he reported what he suspected to be Medicare fraud, including fraudulent billing, occurring at HMA facilities.

Whistleblowers

Persons with knowledge that may help the investigation are encouraged to contact the firm. The SEC recently finalized new rules as part of its implementation of the whistleblower provisions in the Dodd-Frank Wall Street Reform Bill. The new rules protect whistleblowers from employer retaliation and allow the SEC to reward those who provide information leading to a successful enforcement with up to 30 percent of the recovery.

About Hagens Berman

Hagens Berman Sobol Shapiro LLP is an investor-rights class-action law firm with offices in 10 cities. The firm represents whistleblowers, workers and consumers in complex litigation. More about the law firm and its successes can be found at www.hbsslaw.com. The firm's securities law blog is at www.meaningfuldisclosure.com.

Media Contact: Mark Firmani, Firmani + Associates, (206) 443 9357, [email protected]

SOURCE Hagens Berman Sobol Shapiro LLP