Health Management Associates, Inc. (NYSE:HMA) Investor Files Class Action Lawsuit Over Alleged Medicare Compliance Issues

If you purchased shares of Health Management Associates, Inc. (NYSE:HMA), including but not limited to those who purchased HMA shares between July 27, 2009 through January 9, 2012 , you have certain options and there are strict and short deadlines running. Deadline: March 26, 2012. NYSE:HMA stockholders should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Health Management Associates
Case Name: 
Health Management Associates Shareholder Class Action Lawsuit 01/26/2012
Case Status: 
Lawsuit Filed
Affected Securities
NYSE: HMA
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
01/26/2012
Class Period Begin: 
07/27/2009
Class Period End: 
01/09/2012
Court of Filing: 
U.S. District Court for the Middle District of Florida
Deadline To File for Lead: 
03/26/2012
Summary: 

An investor in shares of Health Management Associates, Inc. (NYSE:HMA) filed a lawsuit in the U.S. District Court for the Middle District of Florida against Health Management Associates over alleged Securities Laws Violations in connection with a subpoena by U.S. Department of Health and Human Services over Health Management Associates’ physician referrals as well as ownership and management at our whole-hospital physician joint ventures.

According to the complaint the plaintiff alleges on behalf of investors who purchased Health Management Associates, Inc. (NYSE: HMA) common stock during the period July 27, 2009 through January 9, 2012, that Health Management Associates,, its Chief Executive Officer, and its current and former Chief Financial Officers violated the Securities Exchange Act of 1934 by issuing allegedly materially false and misleading statements between July 27, 2009 through January 9, 2012.
On August 3, 2011, Health Management Associates, Inc. announced that the U.S. Department of Health and Human Services had issued a subpoena requesting "information on [Health Management Associates'] physician referrals as well as ownership and management at our whole-hospital physician joint ventures, among other items."
Then on January 9, 2012 a media report said that an analyst made comments that a former compliance director at Health Management Associates filed a whistleblower lawsuit against the Company.
The whistleblower lawsuit reportedly claims that he was wrongly terminated after uncovering serious Medicare compliance issues at Health Management Associates facilities. Specifically, the whistleblower alleges that several of Health Management Associates' hospitals had a practice of submitting inflated and "fraudulent billing" to Medicare through the improper admission of elderly and disabled patients as inpatients even though such patients clearly did not meet Medicare standards for inpatient treatment.

On January 10, 2012, Health Management announced that its Senior Vice President, General Counsel and Secretary of the Company had resigned effective immediately.

NYSE HMA dropped from as high as $11.30in May 2011 to under $5 per share during January 10, 2012.