| Company: | Vistacare, Inc. |
| Ticker Symbol: | NASD: VSTA |
| Class Period: | November 6, 2003 to August 5, 2004 |
| Date Filed: | Aug-16-04 |
| Lead Plaintiff Deadline: | Oct-11-04 |
| Court: | District, AZ |
| Allegations: |
A securities class action lawsuit was filed in the United States District Court for the District of Arizona on behalf of purchasers of the securities of Vistacare, Inc. ("Vistacare" or the "Company") (Nasdaq:VSTA), between November 6, 2003 and August 5, 2004, inclusive (the "Class Period").
The Complaint alleges that defendant violated the Securities Exchange Act by issuing a series of material misrepresentations to the market, thereby artificially inflating the price of Vistacare securities. Throughout the Class Period, Vistacare reported increased sales and overall growth and profitability in publicly disseminated press releases and SEC filings, and forecasted positive earnings and revenue targets.
Defendants managed to report quarter after quarter of record financial growth because, unbeknownst to investors, Defendants failed to properly reserve its Medicare reimbursements. The truth began to emerge on August 5, 2004. On that date, after the close of trading, the Company issued a press release announcing second quarter financial results for the quarter ending June 30, 2004. The press release stated that results for the quarter were impacted by the Company's decision to accrue $6.2 million in the quarter for its Medicare cap reserve (Cap). This news caused a dramatic decline in Vistacare's share price from a closing price of $18.72 on August 5, 2004 to $15.28 on August 6, 2004, for a total one day decline of over 18%.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
The Complaint alleges that defendant violated the Securities Exchange Act by issuing a series of material misrepresentations to the market, thereby artificially inflating the price of Vistacare securities. Throughout the Class Period, Vistacare reported increased sales and overall growth and profitability in publicly disseminated press releases and SEC filings, and forecasted positive earnings and revenue targets.
Defendants managed to report quarter after quarter of record financial growth because, unbeknownst to investors, Defendants failed to properly reserve its Medicare reimbursements. The truth began to emerge on August 5, 2004. On that date, after the close of trading, the Company issued a press release announcing second quarter financial results for the quarter ending June 30, 2004. The press release stated that results for the quarter were impacted by the Company's decision to accrue $6.2 million in the quarter for its Medicare cap reserve (Cap). This news caused a dramatic decline in Vistacare's share price from a closing price of $18.72 on August 5, 2004 to $15.28 on August 6, 2004, for a total one day decline of over 18%.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
If you feel you qualify for damages or remedies that might be awarded in this class action please fill in our form on the right to submit your complaint.
If your injustice does not match the complaint described above, please use this form to register your complaint. Thank you.
