Case Page

 

Case Status:    DISMISSED    
On or around 11/10/2003 (Other)

Filing Date: June 27, 2003

According to a Business Wire article dated October 30, 2003, Pediatrix Medical Group, Inc. announced that all of the shareholder class action lawsuits that were filed in June and July of 2003 have been voluntarily dismissed without prejudice. The suits were filed following Pediatrix's June 24 announcement that a U.S. Attorney's Office is conducting an investigation into the Company's Medicaid billing practices nationwide.

The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between February 7, 2002 and June 23, 2003, thereby artificially inflating the price of Pediatrix common stock. The Complaint alleges that these statements were materially false and misleading because they
failed to disclose: (1) that the defendants engaged in fraudulent "upcoding" in its billing practices while telling the investing public that its billing practices were legitimate; and (2) Pediatrix materially inflated its Class Period financial results through inclusion of these fraudulent revenues. On June 24, 2003, the Company issued a press release with the headline: "Pediatrix Notified of Billing Inquiry." Contrary to defendants' public representations that its fraudulent billing practices were in the past, the Company announced that it had been advised by the U.S. Attorney's Office that it was conducting a civil investigation into Pediatrix's Medicaid billing practices nationwide. Additionally, the Company announced that the U.S. Attorney's Office intended to make a document and information request, within the next few weeks. Market reaction to the news was swift. Pediatrix's shares fell 24% or $9.90 per share, on unusually high trading volume, to close at $32.20 per share.

COMPANY INFORMATION:

Sector: Healthcare
Industry: Healthcare Facilities
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: PDX
Company Market: New York SE
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: S.D. Florida
DOCKET #: 03-CV-61271
JUDGE: Hon. Jose E. Martinez
DATE FILED: 06/27/2003
CLASS PERIOD START: 04/17/2002
CLASS PERIOD END: 06/23/2003
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Cauley Geller Bowman Coates & Rudman, LLP (New York)
    200 Broadhollow, Suite 406, Cauley Geller Bowman Coates & Rudman, LLP (New York), NY 11747
    631.367.7100 631.367.1173 ·
  2. Cauley Geller, Bowman Coates & Rudman, LLP (Boca Raton, FL)
    One Boca Place. 2255 Glades Road, Suite 421A, Cauley Geller, Bowman Coates & Rudman, LLP (Boca Raton, FL), FL 33431
    561.750.3000 561.750.3364 ·
  3. Kirby McInerney & Squire LLP
    830 Third Avenue 10th Floor, Kirby McInerney & Squire LLP, NY 10022
    212.317.2300 ·
  4. Milberg Weiss Bershad Hynes & Lerach LLP (New York, NY)
    One Pennsylvania Plaza, Milberg Weiss Bershad Hynes & Lerach LLP (New York, NY), NY 10119-1065
    212.594.5300 ·
  5. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
No Document Title Filing Date
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