Opinion ID: 4301416
Heading Depth: 2
Heading Rank: 1

Heading: Alleged False and Misleading Statements

Text: The Fund identifies ninety-three allegedly false and misleading statements by the defendants related to these issues. It states the speaker, date, and medium (e.g., SEC filing, press release, or conference call) for each statement. The allegedly false statements cover several categories. First, the Fund claims that Hanger reported false financial metrics and falsely depicted Hanger as having strong same-store sales. This resulted in reporting inflated financial results for 2011, 2012, and 2013, and for all quarters from the second quarter of 2011 to the second quarter of 2014. Second, the Fund claims that Hanger falsely stated that its Medicare audits and appeals were more successful than they actually were; that its reserves estimates were adequate; and that the Janus implementation caused minimal disruption. Third, the Fund claims that Hanger falsely assured investors that its internal controls were adequate. Finally, the Fund claims that even after Hanger began disclosing a series of problems—most prominently announcing in February 3 Case: 17-50162 Document: 00514587918 Page: 4 Date Filed: 08/06/2018 No. 17-50162 2015 that it would reissue financial statements for 2012 through the second quarter of 2014—Hanger continued to falsely understate “the size and scope of the restatement.”