NEW YORK, Aug. 12, 2004 Legal news, law news, law firm news & research at LAWFUEL–The law firm of Milberg Weiss Bershad & Schulman LLP announces that it has filed a class action lawsuit 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”), seeking to pursue remedies under the Securities Exchange Act of 1934 (the “Exchange Act”). A copy of the complaint filed in this action is available from the Court, or can be viewed on Milberg Weiss’s website at: http://www.milbergweiss.com
The action is pending in the United States District Court for the District of Arizona against defendants Vistacare; Richard Slager (Vistacare’s Chairman, President and Chief Executive Officer) and Mark Liebner (Vistacare’s Chief Financial Officer). The complaint alleges that throughout the Class Period, Vistacare reported record revenue and overall growth and profitability in publicly disseminated press releases and SEC filings, and forecasted positive earnings and revenue targets. The complaint further alleges that, 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 bought the securities of Vistacare between November 6, 2003 and August 5, 2004 and sustained damages, you may, no later than October 11, 2004, request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as “lead plaintiff.” Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Milberg Weiss Bershad & Schulman LLP, or other counsel of your choice, to serve as your counsel in this action.
Milberg Weiss Bershad & Schulman LLP (http://www.milbergweiss.com) is a firm with over 100 lawyers with offices in New York City, Los Angeles, Boca Raton, Delaware, Seattle and Washington, D.C. and is active in major litigations pending in federal and state courts throughout the United States. Milberg Weiss has taken a leading role in many important actions on behalf of defrauded investors, consumers, and others for nearly 40 years. Please contact the Milberg Weiss website for more information about the firm. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following attorneys:
Steven G. Schulman
One Pennsylvania Plaza, 49th fl.
New York, NY, 10119-0165
Phone number: (800) 320-5081
Joseph E. White
5355 Town Center Road
Boca Raton, FL 33486
Phone number: (561) 361-5000