HARTFORD, Conn., June 6, 2008 (LAWFUEL) — The law firm of
Schatz Nobel Izard P.C., which has significant experience representing
investors in prosecuting claims of securities fraud, announces that a
lawsuit seeking class action status has been filed in the United States
District Court for the Middle District of Tennessee on behalf of all
persons who purchased the common stock of Healthways, Inc.
(“Healthways” or the “Company”) (Nasdaq:HWAY) between October 17, 2007
and February 26, 2008, inclusive (the “Class Period”).
The Complaint charges that Healthways and certain of its officers and
directors violated federal securities laws by issuing materially false
and misleading statements regarding the Company’s financial performance
and prospects. As alleged in the Complaint, Healthways became involved
in the Medicare Health Support (“MHS”) pilot program launched by the
Centers for Medicare & Medicaid Services (“CMS”). The MHS program was
designed to improve quality of care and life for people with multiple
chronic conditions, and to help the Medicare program and its
beneficiaries save money. Under the plan’s first three-year phase,
patients were tracked to evaluate care, satisfaction and whether the
plan achieved savings targets. Based on those results, CMS would decide
whether to expand the program to a second phase.
Specifically, the Complaint alleges that Healthways failed to disclose
that: (i) Healthways was not meeting the savings targets, among other
requirements, set by CMS. As a result of Healthways’ failure, CMS would
not expand the MHS program to a second phase and the Company would be
required to reimburse CMS for the fees they had already received
through the program; (ii) Healthways was in danger of losing at least
two existing contracts and was experiencing slower enrollment in an
existing contract due to a decline in the need for the Company’s
services; and (iii) as a result of the foregoing, the Company had no
reasonable basis for its revenues and earnings guidance for fiscal
2008.
If you are a member of the class, you may, no later than August 4,
2008, request that the Court appoint you as lead plaintiff of the
class. A lead plaintiff is a class member that acts on behalf of other
class members in directing the litigation. Although your ability to
share in any recovery is not affected by the decision whether or not to
seek appointment as a lead plaintiff, lead plaintiffs make important
decisions which could affect the overall recovery for class members.
While Schatz Nobel Izard P.C. has not filed a lawsuit against the
defendants, to view a copy of the Complaint initiating the class action
or for more information about the case, class action cases in general,
and your rights, please contact Schatz Nobel Izard P.C. toll-free at
(800) 797-5499, or by e-mail at firm@snilaw.com, or visit our website:
www.snilaw.com.
