NEW YORK, Aug. 16, 2004 (PRIMEZONE) -- Notice is hereby given that a securities class action lawsuit was filed in the United States District Court for the District of Arizona 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").
If you purchased Vistacare securities during the Class Period, you may, no later than October 11, 2004, move the court to serve as a lead plaintiff, provided you meet certain legal requirements. To participate in this class action as a Lead Plaintiff, you will be required to sign the Certification, as provided on our website at www.nyclasslaw.com/join.html. You may return it to us via facsimile to (212) 213-9405.
The Complaint alleges that defendant violated the Securities Exchange Act by issuing a series of material misrepresentations to the market, thereby artificially inflating the price of Vistacare securities. Throughout the Class Period, Vistacare reported increased sales and overall growth and profitability in publicly disseminated press releases and SEC filings, and forecasted positive earnings and revenue targets.
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%.
Plaintiff seeks to recover damages on behalf of all purchasers or acquirers of Vistacare securities during the Class Period. Plaintiff is represented in this class action by the law firm of Bull & Lifshitz, LLP. Bull & Lifshitz, LLP has extensive experience in litigating investor class actions. For more information regarding Bull & Lifshitz, LLP, please view our website at www.nyclasslaw.com.
For an information package (www.nyclasslaw.com/infopackage.html) or if you wish to discuss this action, or have any questions concerning this notice of your rights or interests with respect to this matter, please contact Joshua M. Lifshitz, Esq. or Christine A. Giovannelli, Esq., Bull & Lifshitz, LLP via telephone at (212) 213-6222, via fax at (212) 213-9405 or by email at counsel@nyclasslaw.com