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Robbins Geller Rudman & Dowd LLP Files Class Action Suit against Almost Family, Inc.

^{Published on 2010-08-03 19:40:09 - Market Wire}
 

SAN DIEGO--([ BUSINESS WIRE ])--Robbins Geller Rudman & Dowd LLP (aRobbins Gellera) ([ http://www.rgrdlaw.com/cases/almostfamily/ ]) today announced that a class action has been commenced on behalf of an institutional investor in the United States District Court for the Western District of Kentucky on behalf of purchasers of Almost Family, Inc. (aAlmost Familya) (NASDAQ:AFAM) common stock during the period between November 4, 2009 and June 30, 2010, inclusive (the aClass Perioda).

"the Companya™s home health care services and operations, including reimbursements under the Medicare home health prospective payment system, since January 1, 2000."

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 plaintiffa™s counsel, Darren Robbins of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at [ djr@rgrdlaw.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.rgrdlaw.com/cases/almostfamily/ ]. 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 Almost Family and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Almost Family is a provider of home health services.

The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Companya™s operations and its business and financial results and outlook. Defendants misled investors by failing to disclose that: (i) the Company was deliberately increasing the number of unnecessary home therapy visits in order to receive increased Medicare reimbursements; and (ii) as a result of defendantsa™ conduct, the Companya™s reported sales and earnings were materially inflated. As a direct result of defendantsa™ false statements, Almost Familya™s common stock traded at artificially inflated prices during the Class Period, reaching a high of $43.96 per shares on April 29, 2010.

On April 26, 2010, The Wall Street Journal published an article entitled aHome Care Yields Medicare Bounty.a The article called into question whether four home healthcare companies, including Almost Family, were taking advantage of the Medicare reimbursement system. More specifically, the article revealed that the home healthcare companies, such as Almost Family, billed a higher number of the most profitable home therapy visits for their Medicare patients, while at the same time billing fewer of the least profitable therapy visits. Then, on July 1, 2010, before the market opened, Almost Family announced that the Company had received a civil subpoena for documents and a notice of an investigation from the SEC. The subpoena seeks all documents relating to athe Companya™s home health care services and operations, including reimbursements under the Medicare home health prospective payment system, since January 1, 2000.a As a result of this negative news, Almost Familya™s common stock fell $3.88 per share or 11.11%, on July 1, 2010, on high volume.

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

Robbins Geller, a 180-lawyer firm with offices in San Diego, San Francisco, 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 Robbins Geller Web site ([ http://www.rgrdlaw.com ]) has more information about the firm.