SOURCE: Kahn Swick & Foti, LLC

November 01, 2011 22:35 ET

Kahn Swick & Foti, LLC and Former Louisiana Attorney General Remind Investors With Large Financial Interests of Lead Plaintiff Deadline in Lawsuit Against HCA Holdings, Inc. ("HCA")

NEW ORLEANS, LA--(Marketwire - Nov 1, 2011) - Kahn Swick & Foti, LLC ("KSF") and KSF partner, the former Attorney General of Louisiana, Charles C. Foti, Jr., remind investors that they have until December 27, 2011 to file lead plaintiff applications in a securities class action lawsuit against HCA Holdings, Inc. ("HCA") (NYSE: HCA), if they purchased the Company's common stock pursuant or traceable to the Company's Registration Statement and Prospectus issued in connection with its March 9, 2011 initial public offering ("IPO"). The lawsuit was filed in the United States District Court for the Middle District of Tennessee.

What You May Do

If you are a HCA shareholder and would like to discuss your legal rights and how this case might affect you and your right to recover for your economic loss, you may, without obligation or cost to you, e-mail or call KSF Managing Partner, Lewis Kahn (lewis.kahn@ksfcounsel.com), toll free, 877-515-1850, or via cell phone any time at 504-301-7900. If you wish to serve as a lead plaintiff in this class action by overseeing lead counsel with the goal of obtaining a fair and just resolution, you must request this position by application to the Court by December 27, 2011. Any member of the putative 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. KSF encourages both institutional and individual purchasers of HCA to contact the firm. The ultimate resolution of any securities class action is strengthened through the involvement of aggrieved shareholders and lead plaintiffs who have large financial interests. KSF also encourages anyone with information regarding HCA's conduct during the period in question to contact the firm, including whistleblowers, former employees, shareholders and others.

About the Lawsuit

The complaint charges HCA, certain of its officers and directors and the underwriters of its IPO with violations of the Securities Act of 1933. Plaintiff seeks to recover damages on behalf of all purchasers of HCA common stock issued in connection with its March 9, 2011 IPO (the "Class").

The complaint alleges that HCA sold 145.1 million shares of common stock, for gross proceeds of $4.4 billion, and that it sold these shares pursuant to a materially false and misleading Prospectus.

According to the complaint, the true facts which were omitted from the Prospectus and Registration Statement were that: (a) the Company improperly accounted for its prior business combinations in violation of GAAP; (b) the Company failed to maintain effective internal controls; and (c) the Company failed to disclose known trends and uncertainties that were adversely impacting its revenue growth at the time of its offering.

On October 1, 2011, only months after the HCA public offering, Barron's published a report entitled "Where Did the $15.8 Billion Go?" which questioned HCA's accounting practices. According to the article, HCA improperly accounted for two major acquisitions as recapitalizations. Barron's further alleged that HCA overstated its reported earnings, as the Company was able to avoid taking significant charges, including substantial depreciation and amortization charges, which would have negatively impacted its earnings. On this news, HCA's stock declined $1.35 per share to close at $18.81 per share on October 3, 2011, a one-day decline of nearly 7% -- and a nearly 38% decline from the stock's IPO price.

About Kahn Swick & Foti, LLC

KSF, whose partners include the Former Louisiana Attorney General Charles C. Foti, Jr., is a law firm focused on securities class action and shareholder derivative litigation with offices in New York and Louisiana. KSF's lawyers have significant experience litigating complex securities class actions nationwide on behalf of both institutional and individual shareholders.

To learn more about KSF, you may visit www.ksfcounsel.com.

Contact Information

  • Contact:

    Kahn Swick & Foti, LLC
    Lewis Kahn
    Managing Partner
    877-515-1850
    or after hours via cell phone 504-301-7900
    lewis.kahn@ksfcounsel.com
    206 Covington St.
    Madisonville, LA 70447