CASES
Addus HomeCare Corp.
Class Period: Oct 27, 2009 to Mar 18, 2010
Lead Plaintiff Deadline: May 25, 2010 + Deadline passed
Summary of Case:
A securities class action has been filed against Addus HomeCare Corp. (ADUS) ("Addus" or the "Company") on behalf of all persons or entities who purchased or otherwise acquired Addus pursuant and/or traceable to the Company's false and/or misleading Registration Statement and Prospectus (collectively, the "Registration Statement") issued in connection with the Company's October 27, 2009, initial public offering (the "IPO" or the "Offering"). The case has been filed in the United States District Court for the Northern District of Illinois.
The compalint alleges that Addus and certain of the Company's executive officers and/or directors, among others are charged with violations of federal securities laws. Addus provides a broad range of social and medical services in the home, including personal care and assistance with daily living activities, skilled nursing and rehabilitative therapies and adult day care to individuals with special needs who are at risk of hospitalization or institutionalization, such as the elderly, chronically ill and disabled. The Complaint alleges that the Registration Statement was materially false and misleading and/or omitted facts necessary to make the statements made not misleading, including the following: (1) that the Company's accounts receivables included at least $1.5 million in aging receivables that should have been reserved for; and (2) that the Company's Home Health revenues were falling short of internal forecasts due to a slowdown in admissions from the Company's Integrated Services program due to the State of Illinois' effort to develop new procedures for integrating care.
On March 18, 2010, after the market closed, the Company reported its financial results for the 2009 fiscal fourth quarter and year ending December 31, 2009, and reported a net loss of $3.7 million, or a loss of $0.48 per share for the fourth quarter. The Company indicated that Addus had to increase its bad debt reserve levels by $1.5 million, and that during the fourth quarter the Company's Home Health revenues were short of internal forecasts due to a slowdown in admissions from the Company's Integrated Services program due to the State of Illinois' effort to develop new procedures for integrating care.
The following day, shares of the Company's stock declined $2.60 per share, or approximately 29%, to close at $6.30 per share on March 19, 2010. This closing price represented a cumulative loss of $3.70, or 37%, of the value of Addus shares at the IPO price of $10 per share, just months earlier.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.