September 1, 2015 (Shareholders Foundation) - An investigation on behalf of investors of Hanger Inc (NYSE:HGR) shares over potential securities laws violations by Hanger and certain of its directors and officers in connection certain financial statements was announced.
The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Hanger Inc (NYSE:HGR) concerning whether a series of statements by Hanger regarding its business, its prospects and its operations were materially false and misleading at the time they were made.
On August 7, 2014, Hanger Inc reported its second quarter 2014 financial results. Among other things, Hanger Inc announced that while its second quarter Revenue rose from $267.79 million in 2013 to $275.85 million in 2014, its second quarter Net Income declined from $18.51 million in 2013 to $14.2 million in 2014.Hanger Inc said that the increase in accounts receivable included the impact of increased Medicare audits, which caused the Company's Medicare receivables over 120 days old to increase by $14.0 million year-overyear. Hanger Inc also announced that it is revising its outlook for the year.
On November 6, 2014, Hanger Inc announced that it is rescheduling its third quarter 2014 earnings release and conference call. Hanger Inc said it expected the call to occure in the week of November 10, 2014. Shares of Hanger Inc declined to $19.59 per share on November 7, 2014. Then on Nov. 12, 2014 Hanger Inc announced that it plans to release financial information for the quarter ended September 30, 2014, on Monday, November 17, 2014 before the market opens and that a conference call is scheduled immediately following the release. Shares of Hanger Inc declined to as low as $18.25 per share on November 17, 2014.
On November 12, 2014 a lawsuit was filed against Hanger Inc over alleged securities laws violations. The plaintiff claimed that between August 1, 2013 and August 7, 2014 defendants misrepresented and/or concealed the effect that an increase in Medicare audits had on Hanger Inc's business, including on its reserves for bad debt and accounts receivable.
On June 9, 2015, Hanger Inc (NYSE: HGR) announced that it will restate certain previously issued financial information. Hanger Incsaid that the restatement is due to errors identified in connection with the Companys previously disclosed implementation of new inventory valuation estimation methods, processes and controls, and other previously disclosed errors. Hanger Inc said that the restated financial periods will include the fiscal years ended December 31 of 2009, 2010, 2011, 2012, and 2013; all interim periods for 2012 and 2013; and the interim periods ended March 31 and June 30, 2014.
Shares of Hanger Inc (NYSE:HGR) declined from $40.28 per share in early 2014 to as low as $17.07 per share on September 1, 2015.