NEW YORK, March 30, 2010 (GLOBE NEWSWIRE) -- Pomerantz Haudek Grossman & Gross LLP (www.pomerantzlaw.com) ("Pomerantz") has filed a class action lawsuit in the United States District Court for the Northern District of Illinois pursuant to Sections 11 and 15 of the Securities Act of 1933 against Addus HomeCare Corporation ("Addus" or the "Company") (Nasdaq:ADUS), certain of its officers and/or directors, and the Company's underwriters. The class action (10 C 1937) was filed on behalf of purchasers of Addus common stock pursuant and/or traceable to the Registration Statement and Prospectus (collectively, the "Registration Statement") issued in connection with the Company's October 27, 2009, initial public offering (the "IPO").
Addus provides a broad range of social and medical services in the home, including personal care and assistance with daily living activities, skilled nursing and rehabilitative therapies and adult day care to individuals with special needs who are at risk of hospitalization or institutionalization, such as the elderly, chronically ill and disabled. The Complaint alleges that the Registration Statement was materially false and misleading and/or omitted facts necessary to make the statements made not misleading, including the following: (1) that the Company's accounts receivable included at least $1.5 million in aging receivables that should have been reserved for; and (2) that the Company's Home Health revenues were falling short of internal forecasts due to a slowdown in admissions from the Company's Integrated Services program.
On March 18, 2010, after the market closed, the Company reported its financial results for the 2009 fiscal fourth quarter and year ending December 31, 2009, and reported a net loss of $3.7 million, or a loss of $0.48 per share for the fourth quarter. The Company indicated that Addus had to increase its bad debt reserve levels by $1.5 million, and that during the fourth quarter the Company's Home Health revenues were short of internal forecasts due to a slowdown in admissions from the Company's Integrated Services program due to the State of Illinois' effort to develop new procedures for integrating care.
The following day, shares of the Company's stock declined $2.60 per share, or approximately 29%, to close at $6.30 per share on March 19, 2010. This closing price represented a cumulative loss of $3.70, or 37%, of the value of Addus shares at the IPO price of $10 per share, just months earlier.
If you are a member of the class described above, you may move the Court, no later than May 25, 2010, to serve as lead plaintiff; however, you must meet certain legal requirements. A copy of the Complaint is available from the court or from Pomerantz Haudek Grossman & Gross LLP. Please contact us by telephone to discuss this action or to obtain a copy of the Complaint at (212) 661-1100 or Toll Free at (888) 476-6529, by email at nbrown@pomlaw.com, or visit our website at Pomlaw.com
The Pomerantz Firm, with offices in New York, Chicago, Washington, D.C., Columbus, Ohio and the Burlingame, California, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members.