SAN DIEGO and AUSTIN, Texas, Nov. 14, 2014 (GLOBE NEWSWIRE) -- Shareholder rights law firm Robbins Arroyo LLP announces that an investor of Hanger, Inc. (NYSE:HGR) has filed a federal securities fraud class action complaint in the U.S. District Court for the Western District of Texas. The complaint alleges that the company and certain of its officers and directors violated the Securities Exchange Act of 1934 between August 1, 2013 and August 7, 2014. Hanger provides orthotic and prosthetic patient care services, distributes devices and components, and manages orthotic and prosthetic networks in the United States.
View this information on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/shareholders-rights-blog/hanger-inc
Hanger Is Accused of Misrepresenting the Effect that an Increase in Medicare Audits Had on the Company's Business and Overstating Same-Stores Sales
According to the complaint, shares of Hanger declined nearly 6% on August 5, 2014, to close at $29.87, following an announcement by the company that it would delay the release of its earnings for the second quarter of the 2014 fiscal year. Hanger shares fell an additional $7.39, or 25%, to close at $22.48 per share on August 8, 2014, after the company announced sharply lower year-over-year earnings and lowered its estimated earnings for its 2014 fiscal year. Specifically, Hanger disclosed a second quarter earnings per share decrease of over 23%, from $0.52 per share to $0.40 per share, compared to the same quarter in 2013. Hanger also reduced its estimate of earnings per share for its 2014 fiscal year to a range of $1.60 to $1.70 per share, down from a previous estimate of $2.01 to $2.11 per share. The complaint alleges that this steep decline in earnings resulted from an increase in Medicare audits of the company's reimbursement claims following the passage of the Patient Protection and Affordable Care Act in 2010.
The complaint further alleges that Hanger knew and misrepresented or failed to disclose that its same-store sales growth was overstated and misleading, and that the company maintained inadequate reserves for bad debt and accounts receivables.
Hanger Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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