The stock decline of almost 30% of MedAssets (MDAS) shares prompted an investigation on behalf of investors in MedAssets, Inc. (NASDAQ:MDAS) over possible violations of Federal Securities Laws.

The investigation by a law firm focuses on for potential violations of the federal securities laws by MedAssets, Inc. in connection with certain statements regarding its financial performance.
MedAssets 12 months Total Revenue increased from $146.24million in 2006 to $341.28million in 2009. Its Net Income rose over the same time frame from $8.82million to $19.95million in 2009. For the first three quarters in 2010 MedAssets, Inc. reported a combined nine months Total Revenue of $284.39million with a combined nine months Net Income of $17.27million. Shares of MedAssets, Inc. (NASDAQ MDAS) traded during 2008 as low as $10.70 and increased during 2010 as high as $24.73 per share. Then on February 24, 2011, after the close of trading, MedAssets disclosed, among other things, its fourth quarter and year end financial results. MedAssets reported a loss of $49.4 million, or $0.87 cents per share, in the three months that ended December 31, 2010, compared to net income of $10 million, or $0.17 cents per share, a year earlier. Analysts expected adjusted earnings of $0.22 cents per share on $121.2 million in revenue. Further, MedAssets forecast 2011 adjusted earnings of $0.94 cents to $1.04 per share on revenue of $588 million to $602 million. Analysts expected profit $1.10 per share on $607.4 million in revenue.

On February 25, 2011, shares of MedAssets declined almost 30%. In fact shares of MedAssets, Inc. fell from $$21.32 on Thursday to $14.06 on Friday Feb 25.