An investigation on behalf of former and current employees of Healthcare Services Group, Inc. (Public, NASDAQ:HCSG) concerning potential Employee Retirement Income Security Act (ERISA) breach of fiduciary duty was announced.
Bensalem, Pennsylvania based Healthcare Services Group, Inc. provides housekeeping, laundry, linen, facility maintenance and dietary services to the healthcare industry, including nursing homes, retirement complexes, rehabilitation centers and hospitals located throughout the United States. Healthcare Services Groups 12months Total Revenue went from $511.63million in 2006 to $692.70million in 2009. Its Net Income went from $25.45million to $30.34million. For the first three quarters in 2010 Healthcare Services Group reported a combined nine months Total Revenue of $581.86million with a combined nine months Total Revenue of $25.32million.
According to an investigation by a law firm under ERISA employees (former and current) of Healthcare Services Group, Inc. (NASDAQ:HCSG) may be eligible to file a ERISA complaint for putting stock options at risk if they can prove their employer violated its fiduciary duty to them.
Additionally according to the investigation by a law firm under the Dodd-Frank Wall Street Reform and Consumer Protection Act signed into law in July the SEC can award between 10 percent and 30 percent of any monetary sanctions of more than $1 million to whistleblowers who provide original information leading to a successful SEC enforcement. Whistleblowers may remain completely anonymous and work with the SEC through an attorney. Under the new law, so the investigation, whistleblowers are also granted expanded rights and protections against employer retaliation when disclosing information of corporate wrongdoing to the SEC.
Shares of Healthcare Services Group, Inc. traded during 2006 as low as $8.14per share and increased until Feb of 08 as high as $16.62 per share. HCSG shares fell in April to under $10 and rose during 2009 and 2010 to recently $16.24 per share.