According to a press release dated January 25, 2012, the Company violated federal securities laws by releasing false and misleading statements.
The Complaint alleges that, during the Class Period, the Company made false and/or misleading statements or failed to disclose that: (1) the Company was not in compliance with federal healthcare fraud and false claim statutes; (2) the Company engaged in improper reimbursement practices; (3) the Company lacked adequate internal and financial controls; and (4) as a result of the foregoing, the Company’s statements were materially false and misleading at all relevant times.
On October 18, 2011, after the market closed, the Company disclosed that it had received a subpoena from the Department of Health and Human Services Office of Inspector General. The subpoena requests documents for the period January 1, 2008 through October 6, 2011. Upon these revelations, shares declined $1.27 or more than 40%, to close at $1.85 on October 18, 2011.
On May 8, 2012, the Court issued an Order appointing lead plaintiff and approving the selection of lead counsel.
On July 11, 2012, the Plaintiffs filed an amended complaint.
On September 19, 2013, the Court issued an Order granting defendant's motion to dismiss with prejudice. The Clerk of Court was directed to close this case.
On May 5, 2014, the Court issued an Order granting plaintiffs' motion for reconsideration. The Court vacated the judgment entered on September 19, 2013.
On July 3, 2014, Defendants filed a Motion to Dismiss for failure to state a claim. On December 8, 2015, the Court issued an Order granting Defendant's Motion to Dismiss. On December 16, Plaintiff filed a Notice appealing this decision.
On February 22, 2018, the Court of Appeals issued an opinion reversing in part the decision of the District Court and remanding for proceedings consistent with their opinion. On May 18, the Parties entered into a Stipulation of Settlement.