Polymedica Corp (MM) (NASDAQ:PLMD)
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From Jun 2019 to Jun 2024
PolyMedica Corporation (NASDAQ: PLMD) today announced that the Federal
District Court in Fort Pierce, Florida, has determined that Liberty
Medical Supply, a subsidiary of PolyMedica, violated the Fair Labor
Standards Act with respect to its former overtime compensation and lunch
break deduction policies. The Court ruled that upon final resolution of
the remaining legal issues in the case, it will enter a judgment against
the Company. The lawsuit was filed against the Company by a former
employee in 2005.
Commenting on the announcement, President and Chief Executive Officer
Patrick Ryan said, “We respectfully disagree
with the Court’s ruling and plan to appeal the
decision to the 11th Circuit Court of Appeals
once a final judgment has been entered. We anticipate a final judgment
could be entered in late April 2007 and that the appeals process could
take as long as 24 months. We believe that our former policy regarding
lunch break deductions is supported by both law and industry practice.”
The Company stated that, based on the recent rulings in this matter, it
plans to record a reserve of approximately $1.4 million to reflect the
potential amount of the judgment, the Company’s
legal fees and associated costs, and the legal fees of the plaintiffs
that the Company may be required to pay. Mr. Ryan added, “Recording
such a reserve should not be misinterpreted. Although fiscal
responsibility requires us to do so, we are optimistic that the Court of
Appeals will reverse the District Court’s
ruling.”
Mr. Ryan concluded by saying, “We place a high
value on the work of our team members, and we compensate them fairly for
the time they work. The fact that only a small percentage of Liberty’s
team members are participating in this lawsuit is a testament to the
positive work environment Liberty provides its team members.”
About PolyMedica
For more than a decade, PolyMedica Corporation has been the nation’s
largest provider of blood glucose testing supplies and related services
to people with diabetes and today serves more than 925,000 active
diabetes patients. The Company also offers a full service pharmacy to
meet patients’ medication needs and provides
patient education to help its patients better manage their health
conditions. Through proactive patient outreach, convenient home delivery
and administrative support, PolyMedica makes it simple for patients to
obtain the supplies and medications they need, while encouraging
compliance with physicians’ orders. More
information about PolyMedica can be found on the Company’s
website at www.polymedica.com.
This press release contains forward-looking statements as that term
is defined in the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements are subject to risks and uncertainties, which
could cause actual results to differ materially from those anticipated.
Such risks and uncertainties include, but are not limited to, rules
and regulations promulgated under the Act, unanticipated changes in
Medicare reimbursement, successful participation in new reimbursement
programs, outcomes of government reviews, inquiries, investigations and
related litigation, continued compliance with government regulations,
fluctuations in customer demand, management of rapid growth, competition
from other healthcare product vendors, timing and acceptance of new
product introductions, general economic conditions, geopolitical events
and regulatory changes, as well as other especially relevant risks
detailed in the Company’s filings with the
Securities and Exchange Commission, including its Annual Report on Form
10-K for the period ended March 31, 2006, and Quarterly Reports on Form
10-Q for the periods ended June 30, 2006, September 30, 2006, and
December 31, 2006. The information set forth herein should be read in
light of such risks. The Company assumes no obligation to update the
information contained in this press release.