In re HCA Inc., Securities Litigation
|Court:||United States District Court, Middle District of Tennessee, Nashville Division|
|Judge:||Hon. William J. Haynes, Jr.|
|Class Period:||01/12/2005 - 07/12/2005|
Securities fraud class action filed on behalf of a class of persons and entities who purchased or acquired the securities of HCA, Inc. ("HCA" or the "Company"), between January 12, 2005 and July 12, 2005 (the "Class Period").
On January 26, 2006, the Honorable William J. Haynes, Jr. appointed BLB&G client, the State of Louisiana Firefighters' Retirement System as Co-Lead Plaintiff and BLB&G as Co-Lead Counsel for the Class.
BLB&G and Lead Plaintiffs Obtain $20 Million Settlement on Behalf of Class
On July 20, 2007, BLB&G, along with Lead Plaintiffs, reached a settlement agreement of $20 million with defendants HCA, Inc. and 11 of the Company’s senior officers to settle all claims against them. By Order dated October 12, 2007, the Court granted final approval of the Settlement.
In order to have been eligible to share in benefits of the settlement, class members should have submitted a completed and signed Proof of Claim form postmarked no later than November 26, 2007.
On April 20, 2006, Lead Plaintiffs filed a Consolidated Complaint (the "Complaint") against HCA and 11 of the Company’s senior officers arising out of HCA's financial results for the fourth quarter of 2004 and the first quarter of 2005. The alleged false statements relate to HCA's uninsured admission rates and provision for doubtful accounts - two key financial metrics that determined HCA's profitability and financial health. The Complaint further alleges that as the stock price rose during the seven months from January through July, the individual defendants sold more than 2 million shares of HCA common stock resulting in insider trading proceeds of $109.6 million.
On June 27, 2006, Defendants filed motions to dismiss the Consolidated Complaint. On September 22, 2006, Lead Plaintiffs filed their opposition to Defendants' motion to dismiss.