DENVER, June 6, 2008 (PRIME NEWSWIRE) -- Dyer & Berens LLP (www.DyerBerens.com) today announced that it has filed a class action lawsuit in the United States District Court for the Middle District of Tennessee on behalf of purchasers of Healthways, Inc. ("Healthways" or the "Company") (Nasdaq:HWAY) common stock during the period between October 17, 2007 and February 26, 2008, inclusive (the "Class Period"). The complaint charges Healthways and certain of its officers and directors with violations of the Securities Exchange Act of 1934.
If you are a purchaser of Healthways common stock during the Class Period, you have the legal right to petition the Court to be appointed a "lead plaintiff." A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Any such request must satisfy certain criteria and be made on or before August 4, 2008. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. If you are a Healthways investor and would like to discuss a potential lead plaintiff appointment, or your rights and interests with respect to the lawsuit, you may contact Jeffrey A. Berens, Esq. at 1-888-300-3362, 303-861-1764 or via email at jeff@dyerberens.com. This e-mail address is being protected from spam bots, you need JavaScript enabled to view it.
The class action complaint alleges that the defendants issued false and misleading statements concerning the Healthway's financial performance and prospects. In 2005, Healthways became involved in the Medicare Health Support ("MHS") pilot program launched by the Centers for Medicare & Medicaid Services ("CMS"). According to the complaint, defendants thereafter improperly failed to disclose that: (i) Healthways was not meeting the savings targets, among other requirements, set by CMS. As a result of Healthways' failure, CMS would not expand the MHS program to a second phase and the Company would be required to reimburse CMS for fees received through the program; (ii) Healthways was in danger of losing at least two existing contracts and was experiencing slower enrollment in an existing contract due to a decline in the need for the Company's services; and (iii) as a result of the foregoing, the Company had no reasonable basis for its financial guidance for fiscal 2008. On February 26, 2008, the Company announced that it was lowering its guidance for fiscal 2008 "due to slower-than-projected enrollment in a new Health Support program with one large health plan customer and the recent indication that two previously anticipated contracts will not materialize during this fiscal year." In response, the price of Healthway's common stock plummeted approximately 30%, closing below $32.00 per share.
Dyer & Berens LLP specializes in complex class action litigation on behalf of injured investors throughout the nation. The firm's extensive experience in securities litigation, particularly in cases brought under the Private Securities Litigation Reform Act, has contributed to the recovery of hundreds of millions of dollars for aggrieved investors. Its attorneys have served as lead or liaison counsel in many securities fraud class actions, including: In re Qwest Comm'ns Int'l Sec. Litig.; Croker v. Carrier Access Corp.; UFCW Local 880-Retail Employers Joint Pension Fund v. Newmont Mining Corp.; Rasner v. FirstWorld Comm'ns, Inc.; In re ICG Comm'ns Sec. Litig.; Angres v. Smallworldwide, PLC; In re Ultimate Electronics, Inc. Sec. Litig.; Kerns v. SpectraLink Corp.; Queen Uno Ltd. v. Coeur d'Alene Mines Corp.; Toothman v. One-Stop Wireless of America; Gregg v. Sport-Haley, Inc.; and In re Tele-Communications, Inc. Sec. Litig.
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca