An investigation on behalf of current investors of Healthcare Services Group, Inc. (NASDAQ: HCSG) over possible shareholder claims arising out of potential stock option backdating was announced.

According to the investigation by a law firm the investigation focuses on shareholder claims that certain Healthcare Services Groups officers and directors received backdated stock options, where the date of stock options the company awards are changed to coincide with big moves in the company's stock price. Healthcare Services Group, Inc., provides housekeeping, laundry, linen, facility maintenance and food services to the healthcare industry, including nursing homes, retirement complexes, rehabilitation centers and hospitals located throughout the United States. The corporate insiders and executives of some companies have, so the investigation, apparently been granted stock options that were miraculously awarded just before a large run-up, obviously making those options more valuable. According to the investigation numerous stock options at Healthcare Services Group, Inc were backdated or misdated over numerous years, and that, as a result, the certain officers & directors of Healthcare Services Group have been unjustly enriched and Healthcare Services Groups financial statements have been false & misleading for a multi-year period. Healthcare Services Group is located in Bensalem, PA, and had $602.72million in total revenue with a new income of $26.61million in 2008. The shares of Healthcare Services Group (NASDAQ: HCSG) traded recently at $15.20 per share, down from almost $25 per share in 2008.