BALA CYNWYD, Pa., Aug. 13 /PRNewswire/ -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the District of Arizona on behalf of all securities purchasers of VistaCare, Inc. ("VistaCare" or the "Company") from April 28, 2003 through August 5, 2004, inclusive (the "Class Period").
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Darren J. Check, Esq.) toll-free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@sbclasslaw.com.
The complaint charges VistaCare, Richard Slager, and Mark Liebner with violations of the Securities Exchange Act of 1934. VistaCare provides hospice services in the United States through interdisciplinary teams of physicians, nurses, home healthcare aides, social workers, spiritual and other counselors and volunteers. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company was facing significant Medicare Cap exposures, which grew from $1 million per annum to almost $6.2 million per quarter; (2) that the defendants improperly accrued the Company's Medicare Cap reserves in violation of the Generally Accepted Accounting Principles ("GAAP"); (3) that the Company was experiencing an increase in competitive pressures from large hospice providers, such as Odyssey Healthcare, Vitas, and Nursing Homes, in its key markets; (4) that the Company was suffering a slowdown in organic growth; (5) that as a consequence of the foregoing, the Company was forced to redirect its efforts toward stop gap measures, which negatively impacted its net income; (6) that defendants lacked a reasonable basis for their positive statements about the Company's growth and progress; and (7) that the Company's financial results were materially inflated at all relevant times.
On May 6, 2004, VistaCare announced financial results for the quarter ended March 31, 2004. The results fell well below expectations. News of this shocked the market. Shares of VistaCare fell $9.65 per share or 32.66 percent, on May 7, 2004, to close at $19.90 per share. On August 5, 2004, Vista Care reported results for the second quarter ended June 30, 2004. VistaCare announced that results for the quarter were impacted by the Company's decision to accrue $6.2 million in the quarter for its Medicare cap reserve (Cap) as well as increased SG&A expenses associated with growth of the company's sales organization. On news of this, shares of VistaCare again plunged $3.44 per share or 18.38 to close, on August 6, 2004, at $15.28 per share.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, which prosecutes class actions in both state and federal courts throughout the country. Schiffrin & Barroway is a driving force behind corporate governance reform, and has recovered in excess of a billion dollars on behalf of institutional and high net worth individual investors. For more information about Schiffrin & Barroway, or to sign up to participate in this action online, please visit http://www.sbclasslaw.com/.
If you are a member of the class described above, you may, not later than October 12, 2004, move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Schiffrin & Barroway, or other counsel of your choice, to serve as your counsel in this action.
CONTACT: Schiffrin & Barroway, LLP Marc A. Topaz, Esq. Darren J. Check, Esq. Three Bala Plaza East, Suite 400 Bala Cynwyd, PA 19004 1-888-299-7706 (toll-free) or 1-610-667-7706 Or by e-mail at info@sbclasslaw.com
Schiffrin & Barroway, LLPCONTACT: Marc A. Topaz, Esq. or Darren J. Check, Esq., both of Schiffrin& Barroway, LLP, +1-888-299-7706, +1-610-667-7706 or info@sbclasslaw.com
Web site: http://www.sbclasslaw.com/
