SEATTLE, Aug. 9, 2007 (PRIME NEWSWIRE) -- Keller Rohrback L.L.P. (www.erisafraud.com) announced that it has commenced an investigation against Health Management Associates, Inc. ("HMA" or the "Company") (NYSE:HMA) for potential violations of the Employee Retirement Income Security Act of 1974 ("ERISA"). The investigation focuses on investments in HMA stock by the Health Management Associates, Inc. Retirement Savings Plan (the "Plan").
Recently, on July 31, 2007, HMA updated its fiscal 2007 diluted EPS from continuing operations objective range to be between $0.45 and $0.50 to reflect increased uninsured volumes, due to the Company experiencing a deterioration in the collectibility of accounts receivable from its uninsured patients. The Company also announced that for its second quarter of 2007 it took a $39.0 million charge, and recorded it as an additional reserve to reflect the decline in collectibility of accounts receivable from uninsured patients. Since HMA made this announcement the price of HMA stock has dropped almost 36% and closed at $6.80 on August 3, 2007.
Keller Rohrback's investigation focuses on concerns that HMA and the Plan's administrators may have breached their fiduciary duties of loyalty and prudence to the Plan's participants. A breach may have occurred if the fiduciaries failed to prudently manage the Plan's assets, by among other things, offering HMA stock as a Plan investment option at a time when the stock was not a suitable and appropriate investment option. A breach also may have occurred if the fiduciaries withheld or concealed material information from the Plan's participants with respect to the Company's business, financial results and operations, thereby encouraging participants and beneficiaries to continue to make and maintain substantial investments of company stock in the Plan.
If you are a member of the Health Management Associates, Inc. Retirement Savings Plan and purchased or held HMA stock in the Plan, you may contact paralegal Jennifer Tuato'o or attorneys Eric Fierro, Ron Kilgard or Lynn Sarko toll free at 800/776-6044, or via e-mail at investor@kellerrohrback.com.
Keller Rohrback is one of America's leading law firms handling ERISA retirement plan litigation. We are committed to helping employees and retirees protect their retirement savings. Keller Rohrback serves as lead and co-lead counsel in numerous ERISA class action cases, including cases against Enron, WorldCom, Inc., HealthSouth, and Marsh & McLennan Companies, as well as ERISA cash balance pension plan cases, including JPMorgan Chase & Co. Keller Rohrback has successfully provided class action representation for over a decade. Its trial lawyers have obtained judgments and settlements on behalf of clients in excess of seven billion dollars.