Plaintiff seeks to recover damages on behalf of all purchasers of Addus IPO common stock during the Class Period (the “Class”). Abraham, Fruchter & Twersky, LLP has extensive experience in securities class action cases, and the firm has been ranked among the leading class action law firms in terms of recoveries achieved by a survey of class action law firms conducted by Institutional Shareholder Services. If you would like to discuss this action or if you have any questions concerning this notice or your rights as a potential class member or lead plaintiff, you may contact: Mitchell M.Z. Twersky or Arthur J. Chen of Abraham, Fruchter & Twersky, LLP at 212-279-5050, or via e-mail at email@example.com or firstname.lastname@example.org, respectively. If you wish to serve as lead plaintiff, you must move the Court no later than May 25, 2010. Any member of the proposed class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed class.Attorney Advertising. Prior Results Do Not Guarantee A Similar Outcome.
Abraham, Fruchter & Twersky, LLP announces that a class action lawsuit has been filed in the United States District Court for the Northern District of Illinois on behalf of purchasers of Addus HomeCare Corporation (“Addus” or the “Company”) (Nasdaq:ADUS) stock issued pursuant to the registration statement and prospectus (collectively, the “Registration Statement”) filed with the Securities and Exchange Commission (“SEC”) in connection with the Company’s October 27, 2009 initial public stock offering (the “IPO”). The Complaint charges Addus, certain of the Company's executive officers and directors, and the underwriters of the Offering with violations of federal securities laws. The Complaint alleges that the Registration Statement was materially false and misleading and/or omitted facts necessary to make the statements made not misleading, including the following: (1) that the Company’s accounts receivable included at least $1.5 million in aging receivables that should have been reserved for; and (2) that the Company’s Home Health revenues were falling short of internal forecasts due to a slowdown in admissions from the Company’s Integrated Services program. On March 18, 2010, after the market closed, the Company reported its financial results for the 2009 fiscal fourth quarter and year ending December 31, 2009, and reported a net loss of $3.7 million, or a loss of $0.48 per share for the fourth quarter. The Company indicated that Addus had to increase its bad debt reserve levels by $1.5 million, and that during the fourth quarter the Company’s Home Health revenues were short of internal forecasts due to a slowdown in admissions from the Company’s Integrated Services program due to the State of Illinois’ effort to develop new procedures for integrating care. The following day, shares of the Company’s stock declined $2.60 per share, or approximately 29%, to close at $6.30 per share on March 19, 2010. This closing price represented a cumulative loss of $3.70, or 37%, of the value of Addus shares at the IPO price of $10 per share, just months earlier.