Case Information: Health Management Associates, Inc. ERISA Litigation

This case is pending in the United States District Court for the Middle District of Florida. It includes all participants in the Health Management Associates, Inc. ("HMA" or the "Company") Retirement Savings Plan (the “Plan”) during the period from January 17, 2007 through the present.

The ERISA Plaintiffs filed their Consolidated Complaint on July 27, 2009.  The Complaint alleges that Defendants breached their fiduciary duties to Plan Participants by allowing the investment of Plan assets into Company stock when it was not a prudent investment for retirement accounts. In particular, Defendants knew or should have known that HMA stock was an imprudent investment as a result of the following: (i) the Company experienced a material deterioration in the collectability of its accounts receivable from uninsured patients; (ii) the Company was forced to raise its anticipated bad debt expense to twelve percent (12%) of net revenue; (iii) the Company lacked adequate internal and financial controls; (iv) financial and other statements presented to Plan participants during the Class Period were materially misleading, incomplete, and inaccurate; (v) as a consequence of the above and other non-public factors, the Company’s stock price was artificially inflated; and (vi) given such conditions, heavy investment of retirement savings in Company stock would inevitably result in significant losses to the Plan and, consequently, to its participants.