DALLAS, Jan. 16, 2012 /PRNewswire/ -- Former United States Securities and Exchange Commission attorney Willie Briscoe, founder of The Briscoe Law Firm, PLLC, and the securities litigation firm of Powers Taylor, LLP announce that the firms are investigating legal claims against the officers and Board of Directors of Chemed Corporation ("Chemed" or "CHE") (NYSE: CHE) related to potential securities violations between February 15, 2010 and November 16, 2011 (the "Class Period").

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If you are an affected investor and you want to learn more about the lawsuit or join the action, contact Patrick Powers at Powers Taylor, LLP, toll free (877) 728-9607, via e-mail at patrick@powerstaylor.com, or Willie Briscoe at The Briscoe Law Firm, PLLC, (214) 706-9314, or via email at WBriscoe@TheBriscoeLawFirm.com.  There is no cost or fee to you.

In a recently filed federal class action complaint, Chemed and certain of its officers and directors were charged with violating provisions of the Securities Exchange Act of 1934.  Specifically, the complaint alleges that defendants misrepresented or failed to disclose the following facts during the Class Period: (a) that Chemed engaged in a scheme to fraudulently bill Medicare for hospice services for patients who did not qualify for hospice 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; (b) that a significant portion of Chemed'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; (c) that, in a complaint filed under seal, a former VITAS manager had accused Chemed of engaging in a company-wide scheme to enroll ineligible patients in hospice and fraudulently bill Medicare; (d) that Chemed failed to maintain adequate internal controls and procedures with respect to hospice enrollments and Medicare billings; (e) that Chemed's financial results were materially overstated as a result of defendants' fraudulent scheme to enroll ineligible patients in hospice; and (f) that, as a result of the foregoing, defendants lacked a reasonable basis for their positive statements about Chemed and its prospects.

"Because of the recent allegations of a fraudulent scheme to defraud Medicare potentially involving the officers and directors of Chemed, and other allegations, we are extremely concerned about the damage to the company and its shareholders," said former SEC attorney and shareholder advocate Willie Briscoe.

The Briscoe Law Firm, PLLC is a full service business litigation, commercial transaction, and public advocacy firm with more than 20 years of experience in complex litigation and transactional matters.

Powers Taylor, LLP is a boutique litigation law firm that handles a variety of complex business litigation matters, including claims of investor and stockholder fraud, shareholder oppression, shareholder derivative suits, and security class actions.

 

SOURCE Powers Taylor, LLP

Copyright 2012 PR Newswire

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