The Law Firm of Levi & Korsinsky Notifies Investors with Losses on Their Investment in Chemed Corp. of Class Action Lawsuit &...
January 12 2012 - 6:49PM
Business Wire
Levi & Korsinsky announces that a class action lawsuit has
been commenced in the United States District Court for the Southern
District of Ohio on behalf of investors who purchased Chemed
Corporation (“Chemed” or the “Company”) (NYSE: CHE) stock between
February 15, 2010 and November 16, 2011.
For more information, click here: http://zlk.9nl.com/chemed.
The complaint alleges that during the Class Period, defendants
issued materially false and misleading statements regarding the
Company’s business and prospects. Specifically, the complaint
alleges that defendants misrepresented and/or failed to disclose
the following adverse facts: (a) that the Company engaged in a
scheme to fraudulently bill Medicare for hospice services for
patients who did not qualify for hospice; (b) and fraudulently
shifted the costs of those patients from health maintenance
organizations that covered those patients prior to enrollment in
hospice to the U.S. government; (c) that a significant portion of
the Company’s hospice enrollments, revenues and earnings were the
direct result of defendants’ scheme to enroll ineligible patients
in hospice and fraudulently bill Medicare for hospice services; (d)
that, in a complaint filed under seal, a former VITAS manager had
accused the Company of engaging in a Company-wide scheme to enroll
ineligible patients in hospice and fraudulently bill Medicare; (e)
that the Company failed to maintain adequate internal controls and
procedures with respect to hospice enrollments and Medicare
billings; (f) that the Company’s financial results were materially
overstated as a result of defendants’ fraudulent scheme to enroll
ineligible patients in hospice; and (g) that, as a result of the
foregoing, defendants lacked a reasonable basis for their positive
statements about the Company and its prospects.
On November 16, 2011, a Bloomberg article disclosed that a
former VITAS manager had accused Chemed of defrauding the federal
government by conspiring with health insurers to enroll Medicare
patients who were not dying into hospice. The article also
discussed a U.S. Department of Justice investigation into
fraudulent conduct by VITAS. In reaction to these disclosures, on
November 16, 2011 shares of Chemed stock fell $6.87 per share to
close at $50.65 per share.
If you suffered a loss in Chemed you have until March 12, 2012
to request that the Court appoint you as lead plaintiff. Your
ability to share in any recovery doesn't require that you serve as
a lead plaintiff. To obtain additional information, contact Joseph
E. Levi, Esq. either via email at jlevi@zlk.com or by telephone at
(877) 363-5972, or visit http://www.zlk.com/chemed-che.html.
Levi & Korsinsky has expertise in prosecuting investor
securities litigation and extensive experience in actions involving
financial fraud and represents investors throughout the nation,
concentrating its practice in securities and shareholder
litigation. Attorney advertising. Prior results do not guarantee
similar outcomes.
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