Bernstein Litowitz Berger & Grossmann LLP (“BLB&G”) has filed the first and only securities class action lawsuit against Hanger, Inc. (“Hanger” or the “Company”) (NYSE:HGR) and certain of its executive officers on behalf of the City of Pontiac General Employees’ Retirement System. The action, which was filed in the Western District of Texas, asserts claims under the Securities Exchange Act of 1934 on behalf of investors in Hanger securities during the period of August 1, 2013 through August 7, 2014, inclusive (the “Class Period”). The case has now been docketed as # 14-cv-01026 and has been assigned to U.S. District Judge Sam Sparks.
The Complaint alleges that during the Class Period defendants misrepresented and/or concealed the effect that an increase in Medicare audits had on Hanger’s business, including on its reserves for bad debt and accounts receivable. On August 7, 2014, the Company announced a shocking 23% decline in its earnings per share due to the pressure it experienced from Medicare audits. On this news, the price of Hanger stock declined 25% from $29.87 per share to $22.48 per share.
On November 16, Hanger canceled its previously scheduled earnings conference call and announced that it was again postponing the release of its third quarter 2014 financial results to allow additional time for the completion and review of its third quarter financial statements.
If you wish to serve as Lead Plaintiff for the Class, you must file a motion with the Court no later than 60 days from the date the complaint was filed on November 12, 2014. Accordingly, the deadline for filing a motion for appointment as Lead Plaintiff is January 12, 2015. Any member of the proposed Class may move the Court to serve as Lead Plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed Class.
If you wish to discuss this Action or have any questions concerning this notice or your rights or interests, please contact Avi Josefson of BLB&G at 212-554-1493, or via e-mail at avi@blbglaw.com.
Since its founding in 1983, BLB&G has built an international reputation for excellence and integrity. Specializing in securities fraud, corporate governance, shareholders’ rights, employment discrimination, and civil rights litigation, among other practice areas, BLB&G prosecutes class and private actions on behalf of institutional and individual clients worldwide. Unique among its peers, BLB&G has obtained several of the largest and most significant securities recoveries in history, recovering billions of dollars on behalf of defrauded investors. More information about BLB&G can be found online at www.blbglaw.com.
Contacts:
Avi Josefson,
212-554-1493
avi@blbglaw.com
