Robbins Umeda LLP has commenced an investigation into possible breaches of fiduciary duty and other violations of the law by certain officers and directors at Addus HomeCare Corp. ("Addus" or the "Company") (NASDAQ: ADUS). Addus provides a range of social and medical services to individuals in the home. The Company serves individuals with special needs who are at risk of hospitalization or institutionalization, such as the elderly, chronically ill, and disabled. Addus was founded in 1979 and is based in Palatine, Illinois.
Robbins Umeda LLP's investigation concerns whether the Company's directors and officers caused the Company to issue materially false and misleading statements and failed to disclose adverse facts known to them regarding the Company's business and financial results. Specifically, Robbins Umeda LLP is investigating whether the Company's fiduciaries caused Addus to include or allow the inclusion of materially false and misleading statements and/or omissions in the Registration Statement and Prospectus ("Registration Statement") issued in connection with the Initial Public Offering ("IPO"). Truthfulness in a director or officer's public statements is particularly important for newly public companies because their stock prices are usually volatile and they are just beginning to establish their reputation.
It appears, however, that the Company's fiduciaries did not include in the Registration Statement that the Company's Integrated Services segment was not performing as expected due to the State of Illinois's effort to develop new procedures for integrating care, and that the Company had not reserved for at least $1.5 million in aging receivables. Then, on March 18, 2010, after the market closed, the Company reported a net loss of $3.7 million for the fourth quarter of 2009. Upon this news, the value of Addus fell nearly 30% the following day.
If you are a shareholder of the Addus, plan to continue to hold your shares, and would like more information about your rights as a shareholder, please contact attorney Gregory E. Del Gaizo at 800-350-6003 or by e-mail at email@example.com.Robbins Umeda LLP is a California-based law firm, which has significant experience representing investors in shareholder derivative actions, securities fraud class actions, and merger-related shareholder class actions. For more information about the firm, please go to http://www.robbinsumeda.com. Advertisement