SOURCE: Holzer Holzer & Fistel, LLC

June 09, 2008 11:05 ET

Holzer Holzer & Fistel, LLC Files a Shareholder Class Action Lawsuit on Behalf of Purchasers of Healthways, Inc. Common Stock Between October 17, 2007 and February 26, 2008 -- HWAY

ATLANTA, GA--(Marketwire - June 9, 2008) - Holzer Holzer & Fistel, LLC announces that it has filed a class action lawsuit in the United States District Court for the Middle District of Tennessee on behalf of purchasers of Healthways, Inc. ("Healthways" or the "Company") (NASDAQ: HWAY) common stock during the period between October 17, 2007 and February 26, 2008, inclusive (the "Class Period"). The complaint charges Healthways and certain of its officers and directors with violations of the Securities Exchange Act of 1934.

If you are a purchaser of Healthways common stock during the Class Period, you have the legal right to petition the Court to be appointed a "lead plaintiff." A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Any such request must satisfy certain criteria and be made on or before August 4, 2008. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. If you are a Healthways investor and would like to discuss a potential lead plaintiff appointment, or your rights and interests with respect to the lawsuit, you may contact Michael I. Fistel Jr., Esq., or Marshall P. Dees, Esq. via email at mfistel@holzerlaw.com, or mdees@holzerlaw.com, or via toll-free telephone at (888) 508-6832.

The class action complaint alleges that the defendants issued false and misleading statements concerning the Healthway's financial performance and prospects. In 2005, Healthways became involved in the Medicare Health Support ("MHS") pilot program launched by the Centers for Medicare & Medicaid Services ("CMS"). As alleged in the complaint, defendants thereafter improperly failed to disclose that: (i) Healthways was not meeting the savings targets, among other requirements, set by CMS. As a result of Healthways' failure, CMS would not expand the MHS program to a second phase and the Company would be required to reimburse CMS for fees received through the program; (ii) Healthways was in danger of losing at least two existing contracts and was experiencing slower enrollment in an existing contract due to a decline in the need for the Company's services; and (iii) as a result of the foregoing, the Company had no reasonable basis for its financial guidance for fiscal 2008. On February 26, 2008, the Company announced that it was lowering its guidance for fiscal 2008 "due to slower-than-projected enrollment in a new Health Support program with one large health plan customer and the recent indication that two previously anticipated contracts will not materialize during this fiscal year." In response, the price of Healthway's common stock plummeted approximately 30%, closing below $32.00 per share.

Holzer Holzer & Fistel, LLC is an Atlanta, Georgia law firm that dedicates its practice to vigorous representation of shareholders and investors in litigation nationwide, including shareholder class action and derivative litigation. More information about the firm is available through its website, www.holzerlaw.com and upon request from the firm. Holzer Holzer & Fistel, LLC has paid for the dissemination of this promotional communication, and Michael I. Fistel, Jr. is the attorney responsible for its content.