A lawsuit seeking class-action status was filed against NAHC Inc.
(NAHC, news, msgs), formerly Novacare Inc., for allegedly artificially inflating the company's stock
price from Dec. 28, 1999, to Aug. 7, 2000.
A spokeswoman for NAHC said she wasn't aware of the suit.
In a press release Wednesday, the law firm of Savett Frutkin Podell & Ryan said the complaint, filed in
the U.S. District Court for the Eastern District of Pennsylvania, alleges that the company
misrepresented its liquidation value and financial condition by making false and misleading statements,
which inflated the proceeds from the sale of its component businesses.
As a result of the misrepresentations, the price of the company's common stock was artificially inflated
throughout the class period, the law firm said.
Novacare traded on the New York Stock Exchange until November 1999, and now trades on the
over-the-counter Bulletin Board as NAHC.
The New York Stock Exchange suspended the trading of the common shares of Novacare, and applied
to the Securities and Exchange Commission to delist the company, as reported Nov. 24, 1999.
At that time, the exchange said the physical rehabilitation provider had a substantial reduction in its
operating assets. |
