Lawsuit Overview
February 10, 2012 - The court granted the defendants' motion to dismiss and ordered the case dismissed with prejudice.
May 13, 2011 - Defendants filed a motion to dismiss.
March 4, 2011 - The lead plaintiff filed an amended consolidated complaint on behalf of investors who purchased AFAM common shares between November 6, 2006 and July 5, 2010. The lead plaintiff alleges that defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between November 6, 2006 and July 5, 2010.
January 5, 2011 - The court granted the plaintiff's voluntary dismissal without prejudice.
January 4, 2011 - One of the plaintiffs filed a notice of voluntary dismissal without prejudice.
December 22, 2010 - The lead plaintiff and lead counsel were appointed and all cases were consolidated.
October 4, 2010 - Lead plaintiff motions were filed.
August 2, 2010 - An investor in shares of Almost Family Inc filed a lawsuit in the United States District Court for the Western District of Kentucky on behalf of purchasers of Almost Family Inc (NASDAQ: AFAM) common stock during the period between November 4, 2009 and June 30, 2010, over alleged violations of Federal Securities Laws by Almost Family Inc.
Almost Family Inc, located in Louisville, KY, along with its subsidiaries, is a provider of home health services. According to the complaint the plaintiff alleges that Almost Family Inc and certain of its officers and directors violated the Securities Exchange Act of 1934 by issuing between November 4, 2009 and June 30, 2010, materially false and misleading statements regarding Almost Family Inc’s operations and its business and financial results and outlook.
The lawsuit follows an article in the Wall Street Journal. On April 27, 2010, the Wall Street Journal reported that an analysis by the Wall Street Journal of Medicare payments to home health-care companies in recent years raised questions about whether some companies, including the sector’s largest company Amedisys Inc, are taking advantage of the Medicare reimbursement system. The article also names Gentiva Health Services Inc (NASDAQ: GTIV), LHC Group Inc (NASDAQ: LHCG), and Almost Family Inc (Nasdaq: AFAM). The April 26, 2010 article further stated that “the results show that the number of in-home therapy visits tracks Medicare financial incentives.” Then, on July 1, 2010, before the market opened, Almost Family Inc announced that it had received a civil subpoena for documents and a notice of an investigation from the SEC. The subpoena seeks all documents relating to “ Almost Family Inc’s home health care services and operations, including reimbursements under the Medicare home health prospective payment system, since January 1, 2000.” As a result of this negative news, so the lawsuit, Almost Family Inc’s common stock fell $3.88 per share or 11.11%, on July 1, 2010, on high volume. Almost Family Inc (NASDAQ: AFAM) shares declined from $36 per share on June 30, 2010, to almost $29 per share on July 01, 2010. Shares of Almost Family Inc (NASDAQ: AFAM) traded recently at $25.60 per share, down from its 52 week High of $44.12 per share and over $51 per share in 2008.