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Coughlin Stoia Geller Rudman & Robbins LLP Files Class Action Suit against Nighthawk Radiology Holdings, Inc.

^{Published on 2009-12-17 16:45:40 - Market Wire}
 

NEW YORK--([ BUSINESS WIRE ])--Coughlin Stoia Geller Rudman & Robbins LLP ("Coughlin Stoia") ([ http://www.csgrr.com/cases/nighthawk/ ]) today announced that a class action has been commenced in the United States District Court for the District of Idaho on behalf of an institutional investor on behalf of purchasers of the common stock of NightHawk Radiology Holdings, Inc. ("NightHawk" or the "Company") (Nasdaq:NHWK) between April 10, 2007 and February 13, 2008, inclusive (the "Class Period"), seeking to pursue remedies under the Securities Exchange Act of 1934 (the "Exchange Act").

If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Samuel H. Rudman or David A. Rosenfeld of Coughlin Stoia at 800/449-4900 or 619/231-1058, or via e-mail at [ djr@csgrr.com ]. If you are a member of this Class, you can view a copy of the complaint as filed or join this class action online at [ http://www.csgrr.com/cases/nighthawk/ ]. 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.

The complaint charges NightHawk and certain of its officers and executives with violations of the Exchange Act. NightHawk takes images from medical scans, such as CT scans and X-rays, and sends them for reading to physicians outside of the United States, who are available during times when facilities in the U.S. are closed.

The complaint alleges that, throughout the Class Period, defendants failed to disclose material adverse facts about the Company's true financial condition, business and prospects. Specifically, the complaint alleges that defendants failed to disclose: (i) that the Company was experiencing a delay in transitioning The Radlinx Group ("Radlinx") physician contracts to NightHawk's compensation structure, which would cause the Company to pay more compensation to Radlinx physicians than previously expected; (ii) that demand for the Company's services was weakening; (iii) that the Company was experiencing difficulties in obtaining reimbursement for its services; and (iv) as a result of the foregoing, defendants lacked a reasonable basis for their positive statements about the Company and its prospects.

On February 13, 2008, NightHawk announced its financial results for the fourth quarter and year end of 2007, the period ended December 31, 2007. In response to the Company's announcement, the price of NightHawk stock fell $1.61 per share, or 11%, to close at $12.54 per share, on February 14, 2008.

Plaintiff seeks to recover damages on behalf of all purchasers of NightHawk common stock during the Class Period (the "Class"). The plaintiff is represented by Coughlin Stoia, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.

Coughlin Stoia, a 190-lawyer firm with offices in San Diego, San Francisco, Los Angeles, New York, Boca Raton, Washington, D.C., Philadelphia and Atlanta, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. The Coughlin Stoia Web site ([ http://www.csgrr.com ]) has more information about the firm.