SOURCE: Izard Nobel LLP

April 01, 2010 17:46 ET

Izard Nobel LLP Announces Class Action Lawsuit Against Addus HomeCare Corporation

WEST HARTFORD, CT--(Marketwire - April 1, 2010) -  The law firm of Izard Nobel LLP, which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Northern District of Illinois on behalf of purchasers of the common stock of Addus HomeCare Corporation ("Addus" or the "Company") (NASDAQ: ADUS) 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"). 

The Complaint charges that Addus and certain of its officers, executives and underwriters violated federal securities laws by issuing a misleading Registration Statement that failed to disclose the following facts: (i) that the Company's accounts receivable included at least $1.5 million in aging receivables that should have been reserved for; and (ii) the Company's Home Health revenues were falling short of internal forecasts.

On March 18, 2010, Addus reported a net loss of $3.7 million for the 2009 fiscal fourth quarter and year ending December 31, 2009. Addus indicated that it 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.

If you are a member of the class, you may, no later than May 25, 2010, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.

While Izard Nobel LLP has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, and your rights, visit: www.izardnobel.com/addus/, or contact Izard Nobel LLP toll-free: (800) 797-5499, or by e-mail: firm@izardnobel.com. For more information about class action cases in general, please visit our website: www.izardnobel.com.

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