SOURCE: Kaplan Fox & Kilsheimer LLP

July 15, 2010 10:18 ET

Kaplan Fox Files Securities Class Action on Behalf of Purchasers of Amedisys, Inc. Common Stock for Expanded Class Period

NEW YORK, NY--(Marketwire - July 15, 2010) -  Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) has filed a class action suit against Amedisys, Inc. ("Amedisys" or the "Company") (NASDAQ: AMED), William F. Borne, the Company's Chief Executive Officer and Chairman of the Board of Directors, and Dale E. Redman, the Company's Chief Financial Officer that alleges violations of the Securities Exchange Act of 1934 on behalf of purchasers of Amedisys common stock during the period between April 30, 2008 and June 30, 2010, inclusive (the "Class").

The case is pending in the United States District Court for the Middle District of Louisiana and has been assigned docket No. 3:10-cv-00464-BAJ-DLD. A copy of the complaint may be obtained from Kaplan Fox or the Court.

The Complaint alleges that throughout the Class Period, defendants reported "record" financial results, but failed to disclose (1) that the Company improperly increased the number of in-home therapy visits to patients for the purpose of triggering higher reimbursement rates under the Medicare home health prospective payment system; (2) as a result of the Company's improper conduct, its reported sales and earnings were materially inflated; (3) and based on the foregoing, defendants lacked a basis for their positive statements about the Company, its prospects and growth.

The Complaint further alleges that on April 26, 2010, The Wall Street Journal ("WSJ") reported that an analysis by the WSJ of Medicare payments to home health-care companies in recent years raised "questions about whether some companies -- including the sector's largest, Amedisys, Inc. are taking advantage of the Medicare reimbursement system. The results show that the number of in-home therapy visits tracks Medicare financial incentives." The Complaint alleges that on April 27, 2010, the price of Amedisys stock declined $3.98 per share or 6.5% on heavier than usual volume, to close at $56.52 per share.

The Complaint also alleges that on May 13, 2010 the WSJ reported that the U.S. Senate Finance Committee had started an investigation into the billing and operating practices of Amedisys and, in a Committee letter dated May 12, 2010 to Amedisys, the Committee referenced the April 26, 2010 WSJ Article and requested that the Company produce documents dating as far back as 2006, concerning data on therapy visits, lists of physicians with the highest patient referrals to the Company, and copies of all marketing materials. The Complaint alleges that after these disclosures, the price of Amedisys stock declined 8% or $4.48 per share on heavier than usual volume, to close at $51.76 per share.

Finally, the Complaint alleges that on June 30, 2010, after the close of trading, Amedisys issued a press release that disclosed the Company was under formal investigation by the U.S. Securities and Exchange Commission and, as a result, on July 1, 2010, the price of Amedisys shares declined from a close on June 30, 2010 of $43.98 per share, to close at $39.34 per share, a decline of $4.64 per share or approximately 11%, on higher than usual volume.

If you are a member of the proposed Class, you may move the court no later than August 9, 2010 to serve as a lead plaintiff for the Class. You need not seek to become a lead plaintiff in order to share in any possible recovery.

Plaintiff seeks to recover damages on behalf of the Class and is represented by Kaplan Fox & Kilsheimer LLP. Our firm, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions and actions involving financial fraud. For more information about Kaplan Fox & Kilsheimer LLP, or to review a copy of the complaint filed in this action, you may visit our website at www.kaplanfox.com.

Contact Information

  • If you have any questions about this Notice, the action, your rights, or your interests, please e-mail us at jcampisi@kaplanfox.com or contact:

    Joel B. Strauss
    Jeffrey P. Campisi
    KAPLAN FOX & KILSHEIMER LLP
    850 Third Avenue, 14th Floor
    New York, New York 10022
    (800) 290-1952
    (212) 687-1980
    Fax: (212) 687-7714
    E-mail address: mail@kaplanfox.com

    Laurence D. King
    KAPLAN FOX & KILSHEIMER LLP
    350 Sansome Street, Suite 400
    San Francisco, California 94104
    (415) 772-4700
    Fax: (415) 772-4707
    E-mail address: mail@kaplanfox.com