NEW YORK, March 9, 2011 (GLOBE NEWSWIRE) -- Arcadia Capital Advisors, LLC ("Arcadia"), a top five shareholder of HearUSA Inc. ("HearUSA", or the "Company") (AMEX:EAR), and its managing director, Richard S. Rofe ("Rofe"), have released a follow-up letter to its February 1st open letter to other shareholders, Company management ("Management") and Board of Directors (the "Board"). Arcadia's latest letter identifies and shares its perspective concerning the litigation pending between the Company and Siemens Hearing Instruments, Inc. ("Siemens"). Arcadia based its analysis and anchored its opinions on the publicly available complaint and related documents filed by HearUSA against Siemens in New York State Civil Supreme Court on February 3 (link at end of press release).
"Our analysis of the publicly available complaint filed by HearUSA against Siemens supports our belief that Siemens is being manipulative and malicious," stated Rofe. "The complaint and exhibits suggest that Siemens' claims for further payments stemming from the Canadian transaction have no foundation. HearUSA negotiated the terms of that sale based on a methodology explicitly coordinated with and approved by Siemens. The Company then paid Siemens according to those terms. Siemens reviewed the calculations before payment was made by the Company, which Siemens urgently pressed them to make, and then Siemens accepted the payment without any exceptions. We fail to see how Siemens can make the claim the Company owes Siemens any further payment from the Helix transaction."
"It is highly suspect that after more than eighteen months after they accepted the payment, during which time no issues were raised, Siemens now raises unfounded demands for payments it is not owed. In our opinion, Siemens is attempting to drive the stock price down to acquire HearUSA on the cheap," Rofe continued.
"We believe Siemens is being a destructive partner and acting in a manner that is not conducive to HearUSA's growth," Rofe concluded. "This year should be exciting for the Company, with the launch of its AARP program and the new benefit provider relationships. Though we are disappointed that Siemens has chosen to act in such a manner, we are confident that the strong prospects of HearUSA will reveal the true value of the shares in the near term."
Click the attached link for the letter:
https://irm.ipreo.com/OpenFileLink.aspx?ID1=07f5e0c7ea8043278e97c8bf60f5e3b9&ID2=74302133
About Arcadia Capital Advisors, LLC
Arcadia Capital Advisors is a private investment firm based in New York that employs a value-oriented investment philosophy in the management of long/short hedge funds focused on small and micro-cap companies. The firm is led by Richard Rofe and is sponsored by M.D. Sass-Macquarie Financial Strategies.