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Case ID: 3366 | Stocks | 04/06/2006
Several class actions have been filed against hospice operator Odyssey Healthcare, Inc. (Nasdaq:ODSY) and certain of its officers and directors by stockholders who purchased the company's common stock between May 5, 2003, and February 23, 2004. The actions claim that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock.
The action alleges that the defendants failed to disclose the following material adverse facts: (1) that Odyssey’s financial results were materially inflated because at least six of its hospice programs exceeded the amounts they were entitled to receive in Medicare reimbursements; (2) that the company admitted patients to its hospice programs who were not eligible for Medicare yet claimed that they were; (3) that the company's financial results resulted from its providing a level of care and services below the standards set forth under government guidelines-- this was allegedly caused because Odyssey caseloads were heavier than industry norms; (4) that Odyssey could not keep up with its growth due to higher labor costs - especially in California, which represented 13-15% of its revenues; (5) that higher drug costs were hurting the company's margins; and (6) that Odyssey was suffering from significant negative cash-flow. On February 23, 2004, Odyssey announced that its first-quarter profits would be below analysts' estimates. According to the company, it expected its 2004 earnings per share results to reflect a 23-25% increase over 2003, or $1.03 to $1.05 for the year. For the first quarter of 2004, Odyssey expected earnings per share of $0.20 to $0.22, (analysts expected the company to earn earnings per share of $0.25) compared to $0.19 for the first quarter of 2003. News of this shocked the market with shares of Odyssey falling $7.11 per share, or 26%, to close at $20.32 per share on February 24, 2004. If you purchased securities issued by Odyssey Healthcare during the applicable period, you may request appointment by the court as a lead plaintiff if you do so by June 21, 2004. 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 your claim is typical of the claims of other class members, and that you will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiffs. Your ability to share in any recovery is not affected by the decision whether or not to serve as a lead plaintiff. You may retain any counsel of your choice to serve as you in this action, or you may choose to do nothing, and remain in the class as a silent member. At Lawcash.com, it is our goal to keep you informed about important legal cases, class actions and settlements. Our lawyers offer free legal evaluations in tort cases, class actions, personal injury, and other lawsuits because we are dedicated to helping you resolve your legal complaints. Other Stocks Cases of Interest A class action has been filed against Mamma.com Inc. (NasdaqSC:MAMA), and certain of its officers and directors by stockholders who purchased the company's common stock between May 12, 2004 and February 16, 2005. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock. The market timing scandal is affecting some of the largest mutual funds in the market. Several class actions have been filed against mutual fund manager Massachusetts Financial Services Company, its parent, Sun Life Financial, Inc. (NYSE:SLF) and certain of its officers and directors by all purchasers of shares of the MFS Mutual Funds during the period between December 15, 1998 and December 8, 2003. The actions claim that the defendants violated federal securities laws by allowing market timing sales by certain persons and entities. Several class actions have been filed against global telecommunications provider Primus Telecommunications Group, Inc. (Nasdaq:PRTL), and certain of its officers and directors by stockholders who purchased the company's common stock between November 11, 2003, and July 29, 2004, including all those who purchased securities in Primus' January 13, 2004, debt
offering. The actions claim that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities.
A class action has been filed against Cray, Inc. (NasdaqNM:CRAY), certain of its officers and directors by stockholders who purchased the company's common stock between July 31, 2003 and May 12, 2005. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock. A class action has been filed against NVE Corporation (NVEC), certain of its officers and directors by stockholders who purchased the company's common stock between May 22, 2003 and February 11, 2005. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock. The parties have reached a final $8 million settlement in a class action filed against NTS Development Company. The action alleged that NTS and an affiliate company cheated investors out of millions of dollars by mismanaging limited partnerships and then repurchasing them from the investors at a deep discount, in violation of state law. Persons eligible to participate in this action should contact attorneys for the class as soon as possible. |
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