|Ticker Symbol:||NASD: HWAY|
|Class Period:||October 17, 2007 to February 26, 2008|
|Lead Plaintiff Deadline:||August-4-08|
|Court:||Middle District, TN|
The Complaint charges that Healthways and certain of its officers and directors violated federal securities laws by issuing materially false and misleading statements regarding the Company's financial performance and prospects. As alleged in the Complaint, Healthways became involved in the Medicare Health Support ("MHS") pilot program launched by the Centers for Medicare & Medicaid Services ("CMS"). The MHS program was designed to improve quality of care and life for people with multiple chronic conditions, and to help the Medicare program and its beneficiaries save money. Under the plan's first three-year phase, patients were tracked to evaluate care, satisfaction and whether the plan achieved savings targets. Based on those results, CMS would decide whether to expand the program to a second phase.
Specifically, the Complaint alleges that Healthways failed to disclose that: (i) Healthways was not meeting the savings targets, among other requirements, set by CMS. As a result of Healthways' failure, CMS would not expand the MHS program to a second phase and the Company would be required to reimburse CMS for the fees they had already received through the program; (ii) Healthways was in danger of losing at least two existing contracts and was experiencing slower enrollment in an existing contract due to a decline in the need for the Company's services; and (iii) as a result of the foregoing, the Company had no reasonable basis for its revenues and earnings guidance for fiscal 2008.
If you are a member of the class, you may, no later than August 4, 2008, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.
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.