Berman Tabacco was Lead Counsel representing Lead Plaintiff, a state public pension fund, in a securities fraud class action lawsuit against Healthcare Services Group, Inc. (“HCSG”) and several of its executive officers on behalf of all persons who acquired HSCG common stock during the period between April 8, 2014 and March 4, 2019. HCSG is one of the largest providers of housekeeping and laundry services to hospitals and other healthcare service organizations. The action alleged that, during the class period, defendants issued materially false and misleading statements and failed to disclose “earnings management” practices that allowed HCSG to consistently meet or beat earnings per share estimates, which, in turn, caused the price of the company’s stock to be artificially inflated.
On January 12, 2022, the Honorable Eduardo C. Robreno of the Eastern District of Pennsylvania granted final approval to the $16.8 million settlement in this action. In a 33-page Memorandum approving all aspects of the settlement, Judge Robreno concluded that it was “clear” that each of the Rule 23(e) factors governing class action settlements supported approval of the settlement and that additional considerations established by the Third Circuit further favored approval of the settlement. The Court also found that the overall fairness of the settlement was underscored by the fact that, as Lead Counsel, Berman Tabacco had satisfied a “heightened standard … designed to ensure that class counsel has demonstrated sustained advocacy throughout the course of the proceedings and has protected the interests of all class members.”