Company: HCA, Inc.
Ticker Symbol: NYSE: HCA
Class Period: January 12, 2005 to July 12, 2005
Date Filed: Nov-09-05
Lead Plaintiff Deadline: Jan-08-06
Court: Middle District, TN
A class action has been commenced on behalf of an institutional investor in the United States District Court for the Middle District of Tennessee on behalf of purchasers of HCA, Inc. ("HCA") (NYSE:HCA) publicly traded securities during the period between January 12, 2005 and July 12, 2005 (the "Class Period").

The complaint charges HCA and certain of its officers and directors with violations of the Securities Exchange Act of 1934. HCA is the nation's largest chain of for-profit hospitals.

The complaint alleges that during the Class Period, defendants caused HCA's shares to trade at artificially inflated prices by issuing false statements concerning the Company's purported financial successes while concealing that HCA's operational metrics had substantially deteriorated. Defendants' positive statements had their intended effect, inflating the Company's stock price by almost 50% from less than $40 per share on January 11, 2005 to its Class Period high of over $58 per share on June 22, 2005, during which time defendants sold almost 1 million shares of the Company's stock at inflated prices, pocketing more than $48 million in proceeds.

According to the complaint, on July 13, 2005, HCA issued a profit warning for its 2Q 2005 disclosing that: (a) contrary to defendants' statements that HCA had been experiencing trends beneficial to its "operating results," in reality the Company was then experiencing negative operational trends which were driving down HCA's revenues and decreasing the Company's profitability; (b) despite defendants' statements that the Company was experiencing "a moderation in the growth in its uninsured patient admissions and emergency room visits," the Company's uninsured admissions and emergency room visits were actually increasing more rapidly than insured admissions and emergency room visits, which defendants knew was increasing the Company's bad-debt expense and reducing HCA's profitability; (c) notwithstanding defendants' statements lauding the Company's "favorable change in its estimated provision for doubtful accounts," and "substantial(ly) improv(ing) ... financial performance" due to its "improving bad debt trends," HCA's provision for doubtful accounts was actually increasing as a percentage of revenues; and (d) defendants had materially limited surgeries at certain hospitals due to illegal misconduct. On this news, HCA's stock fell approximately $5 per share on nearly six times the average daily trading volume over the preceding 12 months. Soon thereafter, the Securities and Exchange Commission and the U.S. Department of Justice opened formal investigations into Class Period insider trading at HCA.

If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.

Register your Securities Complaint

If you have suffered from financial losses, you may qualify for damages or remedies that may be awarded in a possible class action lawsuit. Please fill in our form on the right to submit your complaint and we will have a lawyer review your securities complaint.

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