Roy Jacobs & Associates Announces Class Action Securities Fraud Suit On Behalf of Health Management Associates, Inc. Investors -- HMA


NEW YORK, Aug. 6, 2007 (PRIME NEWSWIRE) -- Roy Jacobs & Associates has commenced a Class Action lawsuit in the United States District Court for the Middle District of Florida on behalf of a class (the "Class") of all persons who purchased or acquired securities of Health Management Associates, Inc. ("Health Management" or the "Company") (NYSE:HMA) between January 17, 2007 and July 30, 2007 inclusive (the "Class Period").

For further information you may call toll free, 1-888-884-4490, or contact counsel by e-mail by writing to rjacobs@jacobsclasslaw.com.

The Complaint alleges that defendants violated the federal securities laws by issuing a series of material misrepresentations regarding the Company's allowances for bad debts. The Complaint alleges, among other things, that defendants engaged in a scheme to manipulate Health Management's policies in order to create the impression that the Company had its "bad debt expenses" under control in order to borrow additional money, and to get the Health Management Board to approve management's recapitalization plan. On January 17, 2007, Health Management announced a major recapitalization which was completed in March 2007 and which required the Company to borrow $3.25 billion of new debt to refinance existing debt and pay shareholders a special one-time per share cash dividend of $10.00. The Individual Defendants benefited substantially from this one time dividend. Following the announcement of the recapitalization, some insiders also sold shares.

The Company announced on July 31, 2007 that second quarter net income dropped 85 percent and the Company cut expected earnings for the full year by nearly half. The Company blamed uncollectable receivables from uninsured patients. On this unexpected news the price of Health Management stock dropped almost 25% to close at $8.06 on July 31, 2007, and has declined further.

If you purchased Health Management stock during the Class Period, you may qualify to serve as Lead Plaintiff on behalf of the Class, which consists of all persons and entities who purchased Health Management stock from January 17, 2007 through July 30, 2007. You are not required to have sold your Health Management stock in order to claim damages, or to serve in this role. This case will be prosecuted on a contingent fee basis. All motions for appointment as Lead Plaintiff must be filed with the Court by October 1, 2007.

If you wish to discuss this matter or have any questions concerning this notice or your rights or interests with respect to this matter, please contact Roy L. Jacobs. Mr. Jacobs will personally speak with you at no cost or obligation.

You may also join this action by visiting our website at www.jacobsclasslaw.com.

More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca.



            

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