NEW YORK, Nov. 17, 2014 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Hanger, Inc. ("Hanger" or the "Company") (NYSE:HGR) and certain of its officers. The class action, filed in United States District Court, Western District of Texas, and docketed under 14-cv-01026, is on behalf of a class consisting of all persons or entities who purchased Hanger securities between August 1, 2013 and August 7, 2014, inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
If you are a shareholder who purchased Hanger securities during the Class Period, you have until January 12, 2015 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Hanger, headquartered in Austin, Texas, is a leading provider of orthotic and prosthetic ("O&P") patient care services and is a major distributor of O&P devices in the United States.
The Complaint alleges that on August 5, 2014, after the close of the market, the Company announced that it was delaying the release of its second quarter fiscal year 2014 earnings. Thereafter, on August 7, 2014, the Company reported that earnings per share had plummeted 23.1% from $0.52 per share to $0.40 per share from the same quarter in 2013, and that its estimate of earnings per share for fiscal year 2014 had dropped from $2.01 to $2.11 to $1.60 to $1.70. The Company attributed this sharp decline to the severe pressure placed on the Company due to the increase in Recovery Audit Contractor ("RAC") audits of its reimbursement claims. The Company further announced that the Company's accounts receivable over 120 days had dramatically increased by $14 million year over-year due to the impact of increased RAC audits; that the Company's operating costs had increased $8 million for the year, $4.2 million of which was attributable to an increase in bad debt; and that the Company's same-stores sales growth had contracted by 1.5%, similarly attributable to a slow-down in authorization and payments.
On this news, shares of Hanger fell $7.39 per share, or approximately 25%, to close at $22.48 per share on August 8, 2014 on heavy trading volume.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.