NEW YORK, Sept. 6, 2002 (PRIMEZONE) -- The law firm of Abbey Gardy, LLP has filed a class action against HealthSouth Corp. ("HealthSouth" or the "Company") (NYSE:HRC) in the United States District Court for the Northern District of Alabama, on behalf of all persons or entities who purchased HealthSouth securities during the period from January 14, 2002 and August 26, 2002, inclusive (the "Class Period").
The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market during the Class Period. thereby artificially inflating the price of HealthSouth securities. The complaint alleges, that during the Class Period, the defendants issued numerous statements and filed quarterly reports with the SEC which described the Company's increasing revenues and financial performance and repeatedly assured the market that the Company would meet its financial targets for the year 2002. The complaint alleges that these statements were materially false and misleading because the Centers for Medicare and Medicaid Services ("CMS") had issued directives reclassifying certain categories of reimbursements, which would have a materially negative impact on the Company's business.
The Complaint further alleges that defendants failed to disclose these adverse facts in order to allow certain defendants to sell million of dollars of shares of the Company's stock at artificially inflated price and so that the company could commence a $998 million note offer.
On August 27, 2002, the Company issued a press release announcing that the Company's 2002 earnings would lower than previously projected. As a result of this news HealthSouth stock dropped more than 43% close at $6.71
Plaintiff seeks to recover damages on behalf of all those who purchased or otherwise acquired HealthSouth securities during the Class Period. If you purchased or otherwise acquired HealthSouth securities during the Class Period, and either lost money on the transaction or still hold the securities, you may wish to join in the action to serve as lead plaintiff. If you purchased HealthSouth securities during the Class Period, you may, no later than October 28, 2002, request that the Court appoint you as lead plaintiff.
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 plaintiffs." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff.
Abbey Gardy, LLP has been retained as one of the law firms to represent the Class. The attorneys at Abbey Gardy, LLP have extensive experience in securities class action cases, and have played lead roles in major cases resulting in the recovery of hundreds of millions of dollars to investors. If you would like to discuss this action or if you have any questions concerning this Notice or your rights as a potential class member or lead plaintiff, you may contact Nancy Kaboolian, Esq. of Abbey Gardy, LLP at (800) 889-3701 or email nkaboolian@abbeygardy.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.