WASHINGTON, Sept. 28, 2002 (PRIMEZONE) -- The Law Office of Mark McNair announced a securities class action lawsuit has been filed against HealthSouth Corporation (NYSE:HRC). The complaint is on behalf of, and seeks damages for shareholders who purchased the stock between January 14, 2002 and August 27, 2002.
The Complaint alleges that the Company and certain of its officers and directors violated federal securities laws by issuing a series of materially false and misleading statements to the market. In particular, the Complaint alleges that HealthSouth misled the market concerning expectations for revenues and earnings by failing to disclose the impact on its operations of certain Medicare reimbursement policies. The complaint alleges that HealthSouth knew throughout the Class Period that it was in no position to meet the revenue and earnings guidance it had given to investors. Meanwhile, between May 14, 2002 and July 31, 2002 HealthSouth insiders, and in particular defendant Richard Scrushy, the Company's CEO and Chairman of the Board, together sold nearly $100 million worth of HealthSouth stock.
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 announcement HealthSouth stock dropped more than 43% close at $6.71
To serve as lead plaintiff, you must meet certain legal requirements. The lead plaintiff is a person or institution who acts on behalf of other class members in directing the litigation. The Law Office of Mark McNair recognizes that investors with significant losses often are uncertain about the class action process and they are unclear whether they should take an active role in a case. The Law Office of Mark McNair would be happy to review this process with you. The deadline for filing a Lead Plaintiff Motion is October 28, 2002.
If you have any questions, please contact Mark McNair at 1101 30th Street PN.W. Suite 500, Washington, D.C, 20007 by telephone at (877) 511.4717 or (202) 872.4717, via e-mail at wmmcnair@justice4investors.com or visit our website www.justice4investors.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca