NEW YORK, June 28, 2004 (PRIMEZONE) -- Wolf Popper LLP has filed a securities fraud lawsuit against Hanger Orthopedic Group, Inc. ("Hanger") (NYSE:HGR) and certain of its officers and directors, on behalf of all persons who purchased Hanger securities on the open market from July 29, 2003 through June 14, 2004. The action was filed in the United States District Court for the Eastern District of New York. The complaint can be viewed on Wolf Popper's website or obtained from the Court.
The complaint alleges that during the Class Period, defendants materially misrepresented Hanger's financial results and performance in press releases, SEC filings and public statements by improperly recognizing revenue in contravention of generally accepted accounting principles, the Company's revenue recognition policy and numerous federal laws by improperly billing Medicare for orthotic and prosthetic devices. This scheme was perpetrated by the Company by, among other things, forging prescriptions and recording sales for non-existent patients, thereby materially inflating its reported revenues and income.
Defendants' misrepresentations were revealed on June 14, 2004 when a news story on WNBC-TV reported on the Company's illegal and fraudulent billing practices.
As a result of the news, shares of Hanger plummeted in trading on June 15, 2004, closing at $12.75 per share on heavy trading volume, compared to a closing price of $14.41 the previous day.
Wolf Popper LLP has extensive experience representing shareholders in class actions and has successfully recovered billions of dollars for defrauded investors and shareholders.
Class members who desire to be appointed a lead plaintiff in this action must file a motion with the Court no later than August 23, 2004. Class members who are interested in serving as a lead plaintiff in this action, or other persons who have questions or information regarding the prosecution of this action, are urged to call or write:
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca