According to a press release dated December 17, 2009, the complaint charges NightHawk and certain of its officers and executives with violations of the Exchange Act. NightHawk takes images from medical scans, such as CT scans and X-rays, and sends them for reading to physicians outside of the United States, who are available during times when facilities in the U.S. are closed.
The complaint alleges that, throughout the Class Period, defendants failed to disclose material adverse facts about the Company’s true financial condition, business and prospects. Specifically, the complaint alleges that defendants failed to disclose: (i) that the Company was experiencing a delay in transitioning The Radlinx Group (“Radlinx”) physician contracts to NightHawk’s compensation structure, which would cause the Company to pay more compensation to Radlinx physicians than previously expected; (ii) that demand for the Company’s services was weakening; (iii) that the Company was experiencing difficulties in obtaining reimbursement for its services; and (iv) as a result of the foregoing, defendants lacked a reasonable basis for their positive statements about the Company and its prospects.
On February 13, 2008, NightHawk announced its financial results for the fourth quarter and year end of 2007, the period ended December 31, 2007. In response to the Company’s announcement, the price of NightHawk stock fell $1.61 per share, or 11%, to close at $12.54 per share, on February 14, 2008.
On April 29, 2010, an order was issued by the Court appointing lead plaintiff and lead counsel.
On July 13, 2010, an amended class action complaint was filed by the lead plaintiff against the defendants.
On September 30, 2011, a Report and Recommendation was incorporated by reference granting the defendants’ motion to dismiss without prejudice.
On October 11, 2012, the Court issued an Order Vacating September 30, 2011 Judgment and ordered the Plaintiff to file a motion for preliminary approval of the settlement within 14 days of the order.
On November 2, 2012, the Court issued an amended Order preliminarily approving the settlement.
On March 13,2013, the Court issued a Final Judgment and Order of Dismissal granting the Motion for Final Approval of Class Action Settlement and Plan of Allocation.
On March 13, 2013, the Court issued an Order granting the Motion for Reimbursement of Costs and Expenses.