Addus HomeCare Corporation Under Investor Investigation

An investor in Addus HomeCare Corp. filed a lawsuit on behalf of all persons or entities who purchased Addus HomeCare Corporation common stock (ADUS) pursuant and/or traceable to the Registration Statement and Prospectus issued in connection with the Company’s October 27, 2009, initial public offering (the “IPO”). Meanwhile an investigation on behalf of current long term investors of Addus HomeCare Corporation (NASDAQ:ADUS) was announced.

According to the complaint filed in the United States District Court for the Northern District of Illinois the plaintiff alleges that Addus HomeCare Corporation and certain of its executive officers and/or directors violated federal securities laws, specifically Sections 11 and 15 of the Securities Exchange Act, by issuing in the Registration Statement and Prospectus materially false and misleading and/or omitting facts necessary to make the statements made not misleading. Then on March 18, 2010, after the market closed, Addus HomeCare Corporation reported its financial results for the fiscal fourth quarter and year ended December 31, 2009, and reported a fourth quarter net loss of $3.7 million, or $0.48 per share. Addus HomeCare Corporation announced that its had to increase its bad debt reserve levels by $1.5 million, and that during the fourth quarter its Home Health revenues were short of internal forecasts due to a slowdown in admissions from its Integrated Services program due to the State of Illinois’ effort to develop new procedures for integrating care.

The following day, March 19, 2010, Addus HomeCare’s stock (ADUS) price declined $2.60 per share to close at $6.30 per share, representing a cumulative decline of $3.70, or 37%, of the value of Addus shares at the IPO price of $10 per share.

Shares of Addus HomeCare Corp. (ADUS) traded recently at $5.62 per share, down from $9.15 in November 2009, $9.72 per share in January 2010, and $8.90 per share on March 18, 2010.