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Investor News: Hanger Inc (OTCMKTS:HNGR) under Investigation over possible Wrongdoing

An investigation for investors in OTCMKTS:HNGR shares was announced over potential breaches of fiduciary duties by certain officers and directors at Hanger Inc.

Investors who purchased shares of Hanger Inc (OTCMKTS:HNGR) have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 – 1554.

The investigation by a law firm concerns whether certain Hanger directors breached their fiduciary duties and caused damage to the company and its shareholders.

On August 7, 2014, Hanger Inc reported its second quarter 2014 financial results. Among other things, Hanger Inc announced that while its second quarter Revenue rose from $267.79 million in 2013 to $275.85 million in 2014, its second quarter Net Income declined from $18.51 million in 2013 to $14.2 million in 2014.Hanger Inc said that the increase in accounts receivable included the impact of increased Medicare audits, which caused the Company’s Medicare receivables over 120 days old to increase by $14.0 million year-over–year. Hanger Inc also announced that it is revising its outlook for the year.

On November 6, 2014, Hanger Inc announced that it is rescheduling its third quarter 2014 earnings release and conference call. Hanger Inc said it expected the call to occure in the week of November 10, 2014. Shares of Hanger Inc declined to $19.59 per share on November 7, 2014. Then on Nov. 12, 2014 Hanger Inc announced that it plans to release financial information for the quarter ended September 30, 2014, on Monday, November 17, 2014 before the market opens and that a conference call is scheduled immediately following the release.

On November 12, 2014 a lawsuit was filed against Hanger Inc over alleged securities laws violations. The plaintiff claimed that between August 1, 2013 and August 7, 2014 defendants misrepresented and/or concealed the effect that an increase in Medicare audits had on Hanger Inc’s business, including on its reserves for bad debt and accounts receivable.

On June 9, 2015, Hanger Inc (NYSE: HGR) announced that it will restate certain previously issued financial information. Hanger Incsaid that the restatement is due to errors identified in connection with the Company’s previously disclosed implementation of new inventory valuation estimation methods, processes and controls, and other previously disclosed errors. Hanger Inc said that the restated financial periods will include the fiscal years ended December 31 of 2009, 2010, 2011, 2012, and 2013; all interim periods for 2012 and 2013; and the interim periods ended March 31 and June 30, 2014.

On November 9, 2015, Hanger, Inc. disclosed that it is unable to file its Quarterly Report on Form 10-Q (the “Form 10-Q”) for the quarterly period ended September 30, 2015 within the prescribed time period without unreasonable effort or expense.

On February 29, 2016, Hanger, Inc. disclosed that it is unable to file its Annual Report on Form 10-K (the “Form 10-K”) for the year ended December 31, 2015 within the prescribed time period without unreasonable effort or expense.

On May 10, 2016, Hanger, Inc. disclosed that it is unable to file its Quarterly Report on Form 10-Q (the “Form 10-Q”) for the quarterly period ended March 31, 2016 within the prescribed time period without unreasonable effort or expense.

On the same day Hanger, Inc disclosed that Hanger, Inc. has previously reported in its Current Reports on Form 8-K filed with the Securities and Exchange Commission (the “SEC”) on February 17, 2015, March 23, 2015, June 9, 2015, September 21, 2015, November 12, 2015 and February 26, 2016 (the “Prior Form 8-Ks”) that the Company will be restating certain previously filed financial statements and other financial data as a result of various accounting issues and related matters and that the Company has not yet filed financial statements for the third quarter of 2014, the fourth quarter and full year ended December 31, 2014, the first, second and third quarters of 2015, the fourth quarter and full year ended December 31, 2015 and the first quarter of 2016.

Shares of Hanger Inc (OTCMKTS:HNGR) declined from $40.28 per share in earl 2014 to as low as $7.16 per share on June 29, 2016.

Those who purchased OTCMKTS:HNGR shares have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North – Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com

John:
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