NEW YORK, March 06, 2017 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against HMS Holdings Corp. (“HMS” or the “Company”) (Nasdaq:HMSY) in the United States District Court for District of New Jersey on behalf of persons or entities who purchased HMS stock on the open market from May 10, 2016 and March 2, 2017, inclusive (the “Class Period”), seeking to recover compensable damages caused by Defendants’ violations of the Securities Exchange Act of 1934.
The Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (1) HMS lacked effective internal control over financial reporting; and (2) as a result, HMS’s financial statements were materially false and misleading at all relevant times, and that when the truth was revealed, investors suffered damages.
In November of 2016, HMS revealed that there “could be a material negative impact on our future revenue in future periods” in connection with disputes over the Company’s Medicare Recovery Audit Contractor, owned by HMS, and the Centers for Medicare & Medicaid Services. On this news, HMS shares fell 21.5%, causing tens of millions in losses to investors.
On March 2, 2017, HMS announced it would be unable to timely file its full-year 2016 financial results, revealing that the Company had identified a “material weakness in the Company's internal controls over financial reporting,” resulting in a stock drop of another 2.5%.
If you wish to serve as lead plaintiff, you must move the Court no later than May 2, 2017. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
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