NEW YORK, March 5, 2012 /PRNewswire/ -- Bernstein
Liebhard LLP today announced that one week remains for Chemed
Corporation ("Chemed" or the "Company") investors to make a motion
for lead plaintiff with the Court.
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Several weeks ago, a securities class action was commenced in
the United States District Court for the Southern District of
Ohio on behalf of purchasers of
Chemed (NYSE: CHE) common stock during the period between
February 15, 2010 and November 16, 2011 (the "Class Period").
The complaint charges Chemed and certain of its officers and
directors with violations of the Securities Exchange Act of
1934. Chemed, through its subsidiaries, provides hospice care
and repair and cleaning services in the
United States. The Company operates in two segments: VITAS
and Roto-Rooter.
The complaint alleges that during the Class Period, defendants
issued materially false and misleading statements regarding the
Company's business and prospects. Specifically, 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 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 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; (c) 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; (d) that the Company failed to maintain
adequate internal controls and procedures with respect to hospice
enrollments and Medicare billings; (e) that the Company'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 the Company and its
prospects.
On November 16, 2011, a Bloomberg
article entitled "Whistleblower Accuses Chemed Unit of Medicare HMO
Conspiracy" 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 response to
these announcements, shares of the Company's stock fell
$6.87 per share, or 11%, to close at
$50.65 per share on November 16, 2011.
Plaintiffs seek to recover damages on behalf of all Class
members who purchased or otherwise acquired Chemed shares during
the Class Period. If you purchased or otherwise acquired
Chemed shares during the Class Period, and either lost money on the
transaction or still hold the shares, you may wish to join in this
action to serve as lead plaintiff. In order to do so, you
must meet certain requirements set forth in the applicable law and
file appropriate papers no later than March
12, 2012.
A "lead plaintiff" is a representative party that acts on behalf
of other class members in directing the litigation. In order
to be appointed lead plaintiff, the court must determine that the
class member's claim is typical of the claims of other class
members, and that the class member will adequately represent the
class. Under certain circumstances, one or more class members
may together serve as lead plaintiff. Your ability to share
in any recovery is not, however, affected by the decision whether
or not to serve as a lead plaintiff. You may retain Bernstein
Liebhard LLP, or other counsel of your choice, to serve as your
counsel in this action.
If you are interested in discussing your rights as a Chemed
shareholder and/or have information relating to the matter, please
contact Joseph R. Seidman, Jr. at
(877) 779-1414 or seidman@bernlieb.com.
Bernstein Liebhard has pursued hundreds of securities, consumer
and shareholder rights cases and recovered over $3 billion for its clients. It has been
named to The National Law Journal's "Plaintiffs' Hot List"
in each of the last nine years.
You can obtain a copy of the complaint from the clerk of the
court for the United States District Court for the Southern
District of Ohio.
Bernstein Liebhard LLP
10 East 40th Street
New York, New York 10016
(877) 779-1414
www.bernlieb.com
ATTORNEY ADVERTISING. © 2012 Bernstein Liebhard LLP. The law
firm responsible for this advertisement is Bernstein Liebhard LLP,
10 East 40th Street, New York, New
York 10016, (212) 779-1414. The lawyer responsible for this
advertisement in the State of
Connecticut is Mary U.
Hoover. Prior results do not guarantee or predict a
similar outcome with respect to any future matter.
SOURCE Bernstein Liebhard LLP