Polymedica Shares Off 16 Percent
WOBURN, Mass. (AP) _ Shares of Polymedica Corp. fell 16 percent Wednesday after the medical supply company revealed it is being investigated by the Securities and Exchange Commission.
Polymedica subsidiary Liberty Medical Supply is already the subject of a federal criminal probe.
The SEC formally notified the company of the investigation into ``accounting matters, financial reports, other public disclosures and sales of the company’s securities,″ Woburn-based Polymedica said in a statement late Tuesday.
``We have been cooperating with the SEC,″ Herbert Denton, chairman of the oversight committee of Polymedica’s board of directors, said in the statement.
Shares of the company fell $3.98 to $20.38 in trading on the Nasdaq Stock Market.
The 12-year-old Liberty Medical Supply, which uses actor Wilford Brimley and broadcaster Paul Harvey as its pitchmen, promotes itself as the nation’s leader in home delivery of specialty medical supplies and markets primarily to seniors over the Internet and from a call center in Port St. Lucie.
Polymedica has acknowledged that federal prosecutors in South Florida had an ongoing criminal investigation at Liberty, which has 1,100 employees.
In August, 85 FBI agents, including 19 computer specialists, raided four offices of Liberty Medical Supply and Liberty Home Pharmacy in Florida and the homes of two employees.
Polymedica officials have stated that they believe that Liberty has not broken any laws.
Polymedica is the target of a related securities fraud class-action suit in Boston, and the raids prompted shareholders’ attorneys to say they will expand allegations in their lawsuit.
A message left for company spokesman Eric G. Walters was not immediately returned.
On the Net:
Liberty Medical Supply: http://www.libertymedical.com/