Robbins Umeda LLP Announces an Investigation of Chemed Corporation

Shareholder rights firm Robbins Umeda LLP is investigating possible breaches of fiduciary duty and other violations of the law by certain officers and directors at Chemed Corporation (NYSE: CHE). Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Gregory E. Del Gaizo at (800) 350-6003, inquiry@robbinsumeda.com, or via the shareholder information form on the firm's website.

Robbins Umeda LLP's investigation focuses on whether officials at Chemed breached their fiduciary duties to shareholders and maintained inadequate controls. In particular, the firm is investigating allegations that members of the board of directors 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.

On November 16, 2011, a Bloomberg article entitled “Whistleblower Accuses Chemed Unit of Medicare HMO Conspiracy” disclosed that a former manager of one of the company's subsidiaries, VITAS, 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. These actions have resulted in a decline in value of Chemed's stock, and has subjected Chemed to costly public and legal scrutiny that continues to harm the company and investors.

Robbins Umeda LLP highlights that Chemed shareholders have the option to file a derivative action to hold those officers and directors accountable for damaging the company. Remedies commonly sought in derivative actions include corporate governance reforms designed to prevent future misconduct, removal of officers or directors whose misconduct injured the corporation, and monetary payments in the form of damages and disgorgement of ill-gotten gains.

Robbins Umeda LLP is a nationally recognized leader in securities litigation and 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. For more information, please go to http://www.robbinsumeda.com.

Press release link: http://www.robbinsumeda.com/shareholders-rights-blog/chemed-corp/

Attorney Advertising. Past results do not guarantee a similar outcome.

Chemed (NYSE:CHE)
Historical Stock Chart
From Jun 2024 to Jul 2024