Pediatrix Medical Group, Inc. Overstated Its Revenues and Earnings According to a Shareholder Class Action Filed by Berman Devalerio & Pease LLP
BOSTON, Feb. 16 /PRNewswire/ -- Pediatrix Medical Group, Inc. (NYSE: PDX) was charged with overstating its revenues and earnings in a shareholder class action filed in the United States District Court for the Southern District of Florida. The case, which alleges violations of the federal securities laws, was filed on behalf of all persons and entities who purchased the common stock of PDX from April 28, 1998 through and including February 12, 1999 (the "Class Period") and who suffered losses on their investments.
According to the complaint, PDX issued materially overstated its 1998 financial results. On February 16, 1999, PDX announced that it would likely restate those results so that they would be in conformity with generally accepted accounting principles. PDX's stock price plummeted almost 50% on this revelation.
If you purchased PDX common stock during the Class Period and suffered a loss on your investment, you may wish to contact the lawyers at Berman DeValerio to discuss your rights and interests:
Michael T. Matraia, Esq.
Leslie R. Stern, Esq.
Jeffrey C. Block, Esq.
Berman, DeValerio & Pease LLP
One Liberty Square, Boston, MA 02109
E-Mail: bdplaw@bermanesq.com.
800-516-9926
You can also visit us at our website at www.bermanesq.com.
In addition, under the federal securities laws you may, but not later than sixty days from February 16, 1999, move the court to serve as lead plaintiff of the Class, if you so choose. To serve as lead plaintiff, however, you must meet certain legal requirements.
You may contact the attorneys at Berman DeValerio & Pease LLP to discuss your rights regarding the appointment of lead plaintiff.
Berman, DeValerio & Pease LLP, is among the leading firms in the nation which specializes in representing shareholders in securities class actions, has substantial experience in prosecuting accounting frauds. The firm has been appointed lead counsel in numerous actions involving companies issuing false financial information, has successfully litigated these actions and has been singled out for its excellence by many courts.
/CONTACT: Michael T. Matraia, Esq. or Leslie R. Stern, Esq. of Berman, DeValerio &
Pease LLP, 800-516-9926/
10:44 EST
=Pediatrix Stk -2: Co. Won't Back 4Q Earnings Views
NEW YORK (Dow Jones)--Shares of Pediatrix Medical Group Inc. (PDX) lost nearly half their value Monday on news that the physician practice-management company may have to restate earnings and is no longer backing analysts' earnings estimates.
The NYSE-listed stock was halted about an hour before Pediatrix released the news Friday afternoon. In over-the-counter trading, however, the stock dropped 25 5/8, or 47.8%, to a 52-week low of 28 on volume of 627,100, compared with a daily average of 123,500.
Earlier Monday, the shares sank past that floor to an intraday low of 25. They recently traded on the Big Board at 26 3/8, down 21 1/4, or 44.6%, on volume of 1.5 million.
On Friday, Pediatrix said its new auditors, KPMG Peat Marwick, had requested more information about its accounts receivable. In addition, KPMG said Pediatrix's accounting policy of capitalizing certain acquisition-related costs wouldn't pass the SEC's muster.
Pediatrix said the after-tax amount of the acquisition related-costs is $1.3 million for 1998.
As a result of the new questions, the company said it may have to restate its earnings and was backing off on its statement Wednesday that it would exceed analysts fourth-quarter earnings estimates of 50 cents a share, up from 40 cents a year earlier.
"Given the status of the audit process," the company said Friday, "Pediatrix can no longer express confidence to comment on the consensus analysts' estimates for 1998, or when KPMG will be able to complete its work associated with the 1998 audit."
Pediatrix had to switch auditors earlier in the week because of conflict-of-interest problems at PricewaterhouseCoopers, whose employee had owned Pediatrix shares at the time he worked on the company's 1996 audit. The accounting firm later settled that charge with the Securities and Exchange Commission with a censure.
On Wednesday, Pediatrix sought to assure investors about the change in auditors, saying it was simply seeking a concurrent opinion and that PricewaterhouseCoopers had told the company its conflicts would have "no material impact on Pediatrix's financial statements."
Early Tuesday, analysts from BT Alex. Brown Inc., Morgan Stanley Dean Witter, Morgan Keegan Inc. and Credit Lyonnais cut their ratings on the stock.
Also Tuesday, at least one law firm filed a lawsuit on behalf of people who acquired Pediatrix stock from April 28 through Feb. 12.
- Raymond Hennessey; 201-938-5240; raymond.hennessey@cor.dowjones.com
(END) DOW JONES NEWS 02-16-99
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