HARTFORD, Conn., June 28 /PRNewswire/ -- The law firm of Schatz & Nobel, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Eastern District of New York on behalf of all persons who purchased the publicly traded securities of Hanger Orthopedic Group, Inc. (“Hanger”) between July 29, 2003 and June 14, 2004, inclusive (the “Class Period”). Also included are all those who acquired Hanger through its acquisitions of Brace Shop Prosthetic, Rehab Designs, Advance Prosthetic Services, ADL Prosthetic, Advanced Bio-Mechanics, and Northern Virginia Orthotics.
The Complaint alleges that Hanger, a provider of orthotic and prosthetic patient-care services, and certain of its officers and directors issued materially false statements concerning the Company’s financial condition. Specifically, defendants, who were under tremendous pressure to meet the expectations they themselves had set, engaged in an illegal scheme to bilk the Medicaid and Medicare programs, the Veterans Administration and private insurers. Unbeknownst to investors, Hanger improperly booked sales by filling out fake prescriptions and adding items that were not prescribed for existing patients. This practice not only artificially inflated Hanger’s revenues and earnings, it also jeopardized Hanger’s status as a Medicare and Medicaid provider, and its relationships with private insurers.
On June 14, 2004, after the close of trading, NBC News aired an investigative report in which a Hanger employee described the Company’s allegedly fraudulent billing practices. The next day, Hanger issued a news release over the PR Newswire in which it admitted that the Company had initiated an investigation into “billing irregularities.” Hanger’s shares fell to a closing price of $12.75 on June 15, 2004.
If you are a member of the class, you may, no later than August 23, 2004 request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
For more information about the case, its claims, and your rights, please contact Schatz & Nobel toll-free at (800) 797-5499, or by e-mail at sn06106@aol.com. To view a copy of the lawsuit initiating the class action, or for more information about class action cases and Schatz & Nobel, please visit our website: http://www.snlaw.net/.
CONTACT: Nancy A. Kulesa Tel.: (800) 797-5499 Website: http://www.snlaw.net/ e-mail: sn06106@aol.com
Schatz & Nobel, P.C.
CONTACT: Nancy A. Kulesa of Schatz & Nobel, +1-800-797-5499,sn06106@aol.com
Web site: http://www.snlaw.net/
