Bronstein, Gewirtz & Grossman, LLC Investigates Chemed Corp.
November 18 2011 - 12:07PM
Business Wire
Attorney Advertising-- Bronstein, Gewirtz & Grossman, LLC is
investigating potential claims on behalf of purchasers of the
securities of Chemed Corp. (“Chemed” or the “Company”) (NYSE:CHE),
concerning whether the company and certain of its officers and
directors have violated federal securities laws.
On Wednesday November 16, 2011, shares of the Company fell $6.87
or 12% and closed at $50.65, on news that a former Vitas Healthcare
Corp manager, Michael Rehfeldt, accused the hospice chain of
defrauding the federal government by conspiring with health
insurers to enroll Medicare patients who were not facing imminent
death - a Medicare requirement for hospice eligibility. The Lawsuit
says the arrangement allegedly benefited Vitas by providing hospice
patients, while allowing “the HMO defendants to dump non-profitable
patients onto hospice, regardless of their qualifications.” The
allegations came in a lawsuit unsealed last week in U.S. District
Court in Dallas.
The Company has attracted government scrutiny as well as its
Medicare-covered patients have doubled to 1.1 million over the last
decade. In the same court, the DOJ is seeking internal Vitas
documents in an investigation focused on alleged abuses of federal
health-insurance programs. The government has told the court it
suspects Vitas of “an extensive scheme” to defraud Medicare and
Medicaid of “hundreds of millions of dollars” by falsifying records
and hospice certifications. The DOJ said in a court filing that it
is “not intervening at this time” in the whistleblower suit,
although “its investigation of the allegations will continue.” The
Texas Attorney General’s office filed an identical notice.
If you are aware of any facts relating to this investigation, or
purchased shares of Chemed Corp., you can assist this investigation
by contacting either Peretz Bronstein or Eitan Kimelman of
Bronstein, Gewirtz & Grossman, LLC at 212-697-6484 or via email
eitan@bgandg.com. Those who inquire by e-mail are encouraged to
include their mailing address and telephone number.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation
boutique. Our primary expertise is the aggressive pursuit of both
class and individual litigation claims on behalf of our clients. In
addition to representing institutions and other investor plaintiffs
in class action security litigation, the firm’s expertise includes
general corporate work, litigation and securities arbitration.
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