NEW YORK, Aug. 30, 2004 (PRIMEZONE) -- The law firm of Kirby McInerney & Squire, LLP announces that a class action lawsuit has been commenced in the United States District Court for the District of Arizona on behalf of all purchasers of Vistacare, Inc.("Vistacare" or the "Company") (Nasdaq:VSTA) securities during the period from November 6, 2003 through August 5, 2004, inclusive (the "Class Period").
Please visit our website, which offers summary and detailed information concerning the suit at: (http://www.kmslaw.com/new_cases/vistacare/vistacare.htm) or contact us by phone, toll-free, at (888) 529-4787 or by email at: (vlee@kmslaw.com) for more information.
The action charges Vistacare and certain of its senior officers with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. The alleged violations stem from the dissemination of false and misleading statements, which had the effect - during the Class Period - of artificially inflating the price of Vistacare's shares.
Investors allege that during the Class Period, the Company concealed the following material adverse facts: (a) that the Company had manipulated the Company's EPS during the Class Period by understating the Company's Medicare reserves; and (b) that the Company's mix of patients requiring shorter hospital stays was declining, forcing the Company to increase reserves beyond the Medicare credit of $18,661 per patient, the equivalent of approximately 150 days.
Kirby McInerney & Squire, LLP has specialized in complex litigation, including securities class actions, for several decades. The firm has repeatedly demonstrated its expertise in this field, and has been recognized by various courts which have appointed the firm to major positions in consolidated and multi-district litigation. The firm's efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling hundreds of millions of dollars, and its achievements and quality of service have been chronicled in numerous published decisions. More information about the firm, class actions in general, or about the role of the lead plaintiff in a securities class action can be obtained through Kirby McInerney & Squire's website at: (http://www.kmslaw.com).
If you are a member of the class described above, you may, no later than October 11, 2004, move the Court to serve as lead plaintiff of the class, if you so choose, pursuant to the Private Securities Litigation Reform Act of 1995 (the "PSLRA"), 15 U.S.C. section 78u-4(a). A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. 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 seek appointment as a lead plaintiff. For more information about the case, its claims, and your rights, you can contact: