Opinion ID: 212733
Heading Depth: 1
Heading Rank: 5

Heading: Quarterly Report & Earnings Call, Third Quarter 2007

Text: Finally, Anima challenges the third quarter 2007 disclosures. In the earnings call, the defendants noted that the AMA Panel's work was underway, and they anticipated that any of a number of recommendations could result, including continued reimbursement under the existing codes or new codes that could reimburse at various levels. They reiterated their belief that the current codes were sufficient and appropriate and their reasoning. On November 8, 2007, the company filed its third quarter report. In the three pages of excerpts included in the complaint, the defendants noted declining revenues, which they attributed to adverse developments over the last several quarters relating to ... reimbursement. Id. at 63. They further noted that they expected recommendations from the AMA Editorial Panel, which may or may not be beneficial, in early 2008. Id. They noted the ongoing difficulties with reimbursement and added that [a]dditional third-party payers, including local Medicare carriers and commercial payers, could potentially take a position that could reduce or eliminate the reimbursement for the NC-Stat System and could have the impact of deterring usage by our customers. Id. at 66. As with the other statements from late in the class period, this disclosure is more comprehensive on the problems being faced by NeuroMetrix than are the factual allegations in the complaint. The district court was correct to dismiss the claim based on this statement.