Robbins Arroyo LLP: Tenet Healthcare Corporation (THC) Misled Shareholders According to a Recently Filed Class Action
December 16 2016 - 3:22PM
Business Wire
Shareholder rights law firm Robbins Arroyo LLP announces that a
class action complaint was filed against Tenet Healthcare
Corporation (NYSE: THC) in the Superior Court of the State of
Georgia for Fulton County. The complaint is brought on behalf of
all persons who were patients at Hispanic Medical Management, Inc.,
d/b/a Clinica De La Mama ("Clinica") and were referred to Tenet
hospitals for labor and delivery services, for fraud, negligent
misrepresentation, and alleged violations of the Anti-Kickback
Statute. Tenet, together with its subsidiaries, primarily operates
acute care hospitals and related healthcare facilities.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/tenet-healthcare-corporation-dec-2016
Tenet Accused of Participating in Illegal Scheme to Gain
Referrals
According to the complaint, Tenet entered into written contracts
with various entities, including Clinica and other affiliated
Clinica entities, with the purpose of receiving patient referrals.
According to the agreement, Tenet would pay the owners and
operators of Clinica for referring its Medicaid patients to Tenet
hospitals for delivery and arranging for services to be provided to
Clinica patients and their newborns at Tenet hospitals. The
complaint alleges that Tenet ultimately paid Clinica $12 million in
exchange for these referrals. In the process of implementing its
scheme, Tenet submitted false certifications to various state
Medicaid programs, erroneously stating that Tenet was in compliance
with applicable federal and state laws. Tenet's claims to the state
Medicaid programs allegedly resulted in its receipt of more than
$125 million in Georgia and South Carolina Medicaid funds and more
than $20 million in Medicare Disproportionate Share program
funds.
Tenet's scheme allegedly resulted in Clinica patients being
forced to visit Tenet hospitals for labor and delivery services
that were readily available at other hospital facilities. The
company's unlawful agreement mostly affected undocumented Hispanic
women who would be eligible for emergency Medicaid services when
they gave birth. The victims put their health and safety, and that
of their newborns, at risk by traveling long distances from their
homes to deliver at Tenet hospitals, and also incurred unnecessary
charges and expenses as a result. Notably, Tenet and several of its
entities recently entered into a settlement for $513 million to
resolve a criminal investigation and civil litigation about the
kickback scandal.
Tenet Shareholders Have Legal Options
Concerned shareholders who would like more information about
their rights and potential remedies can contact attorney Darnell R.
Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the
shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in
shareholder rights law. The firm represents individual and
institutional investors in shareholder derivative and securities
class action lawsuits, and has helped its clients realize more than
$1 billion of value for themselves and the companies in which they
have invested.
Attorney Advertising. Past results do not guarantee a similar
outcome.
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version on businesswire.com: http://www.businesswire.com/news/home/20161216005734/en/
Robbins Arroyo LLPDarnell R. Donahue(619) 525-3990 or Toll Free
(800) 350-6003DDonahue@robbinsarroyo.comwww.robbinsarroyo.com
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