NEW YORK, July 10, 2003 (PRIMEZONE) -- Notice is hereby given that a class action lawsuit was commenced in the United States District Court for the Southern District of Florida on behalf of all purchasers of Pediatrix Medical Group, Inc. ("Pediatrix" or the "Company") (NYSE:PDX) securities between February 7, 2002 and June 23, 2003, inclusive (the "Class Period"). A copy of the complaint filed in this action can be viewed on the firm's website at www.faruqilaw.com
The complaint charges defendants with violations of federal securities laws by, among other things, issuing a series of materially false and misleading press releases concerning Pediatrix's financial results and business prospects. Specifically, the complaint alleges that Pediatrix failed to disclose, among other facts, that: (i) the Company engaged in fraudulent "upcoding" in its billing practices while representing to the investing public that its billing practices were legitimate; (ii) by virtue of having improperly received and recorded as revenue payments to which Pediatrix was not entitled, Pediatrix materially inflated several key indicators, including operating income, net inpatient revenue per admission, EBITDA and EBITDA margins; and (iii) these unsafe and unsound business practices materially misrepresented the Company's business operations and financial performance by enabling the Company to post better financial results. As a result, the price of the Company's securities were artificially inflated during the Class Period. On June 24, 2003, however, the Company shocked the market when it announced that the U.S. Attorney's Office was conducting a civil investigation into Pediatrix's Medical billing practices nationwide. Upon this revelation, Pediatrix's common stock fell in excess of 20% in a single day on extremely heavy trading volume.
Plaintiff seeks to recover damages on behalf of himself and all other individual and institutional investors who purchased or otherwise acquired Pediatrix securities between February 7, 2002 and June 23, 2003, excluding defendants and their affiliates. Plaintiff is represented by Faruqi & Faruqi, LLP, a law firm with extensive experience in prosecuting class actions, and significant expertise in actions involving corporate fraud.
If you wish to obtain information concerning joining this action you can do so under the "Join Lawsuit" section of our website at www.faruqilaw.com
If you purchased Pediatrix securities during the Class Period, you may, not later than August 29, 2003, move the court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action, or have any questions concerning this notice or your rights or interests, please contact:
ANTHONY VOZZOLO, ESQ. FARUQI & FARUQI, LLP 320 East 39th Street New York, NY 10016 Telephone: (877) 247-4292 or (212) 983-9330 e-mail: Avozzolo@faruqilaw.com TICKER: NYSE:PDX