Hanger, Austin, Texas, is facing an investigation and multiple class action lawsuits for securities fraud.
Several law firms have announced that they have commenced proceedings against Hanger in the U.S. District Court for the Western District of Texas on behalf of investors who purchased Hanger securities between August 1, 2013 and August 7, 2014. Among those are Bernstein Litowitz Berger & Grossmann, New York, New York, who has filed a securities class action lawsuit on behalf of the city of Pontiac, Michigan, General Employees’ Retirement System; Levi & Korsinsky, New York; and The Rosen Law Firm, New York. The complaints allege that Hanger and certain of its executives misrepresented and/or concealed the effect that an increase in Medicare audits had on the company’s business, including on its reserves for bad debt and accounts receivable.
When asked to comment, a Hanger spokesperson said, “The allegations in the lawsuit are without merit and we intend to vigorously defend this matter.”