A lawsuit was filed by a current investor in shares of Healthways, Inc. (NASDAQ:HWAY) over alleged breaches of fiduciary duties in connection with certain executive pay and other current NASDAQ:HWAY stockholders should contact the Shareholders Foundation.

San Diego, CA -- (SBWire) -- 09/11/2012 --An investor in Healthways, Inc. (NASDAQ:HWAY) shares filed a lawsuit against directors of Healthways, Inc. in connection with certain stock options the company gave to its CEO.

Investors who are current long-term stockholders in shares of Healthways, Inc. (NASDAQ:HWAY), have certain options and should contact the Shareholders Foundation

The plaintiff alleges that the board of directors breached their fiduciary duties by granting the CEO a substantial amount of stock options in excess of what was expressly authorized under the Healthways’ shareholder-approved 2007 Stock Incentive Plan.

The plaintiff says that the 2007 Stock Incentive Plan provides a clear, unambiguous language that the maximum number of stock options granted to any individual participant in any calendar year shall not exceed 150,000 shares.

The plaintiff alleges that the board of directors inexplicably granted the CEO 449,436 stock options pursuant to the 2007 Stock Incentive Plan, or 299,436 stock options in excess of the 150,000 per year limit and in 2012, the board of directors has so far granted the CEO 285,000 stock options pursuant to the 2007 Stock Incentive Plan, 135,000 options in excess of the amount expressly authorized under the 2007 Stock Incentive Plan.

Healthways, Inc. (NASDAQ:HWAY) reported that its annual Revenue fell from $720.33 million in 2010 to $688.76 million in 2011 and its Net Income of $47.33 million in 2010 declined to a Net Loss of $157.69 million in 2011.

Shares of Healthways, Inc. (NASDAQ:HWAY) traded in 2011 as high as $17.19 per share and as low as $6.30 per share in 2011.

Nevertheless, the total compensation of certain top officials at Healthways, Inc. (NASDAQ:HWAY) increased from 2010 to 2011. For instance, the President and CEO’s pay rose from over $3.14 million in 2010 to over $3.3 million in 2011 and the VP and CFO’s total compensation increased from over $1.59 million in 2010 to over $1.77 million in 2011.

NASDAQ:HWAY shares closed on September 10, 2012 at $10.78 per share.

Those who are current long-term stockholders in shares of Healthways, Inc. (NASDAQ:HWAY), have certain options and should contact the Shareholders Foundation

Contact:
Shareholders Foundation, Inc.
Joelle Day
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com