Hagens Berman LLP Continues To Investigate Community Health and Tenet for Potential Securities Violations
April 12 2011 - 9:00PM
Business Wire
Hagens Berman LLP, a nationwide, investor-rights law firm, is
continuing its investigation of Community Health Systems (NYSE:
CYH) (“Community Health”) and Tenet Healthcare (NYSE: THC) for
securities law violations. Tenet recently filed a lawsuit alleging
that Community Health used improper admissions tactics to inflate
its stock price and, as such, committed proxy fraud.
The complaint was filed in U.S. District Court in Texas by Tenet
Healthcare. It alleges that Community Health employed a number of
improper admissions tactics in order to exaggerate its growth. The
complaint argues that physicians encouraged medically unnecessary
admissions at the hospitals in order to increase payments from
Medicare. A summary of the allegations can be found here.
On April 11, 2011, after Tenet’s lawsuit against Community
Health was filed, media sources reported that Community Health’s
stock had dropped 35 percent to $26.24 per share. At the same time,
media sources reported that Tenet Healthcare’s stock had dropped to
$6.51, a loss of nearly 14 percent. Community Health and some
analysts have responded that the allegations, based upon
statistical analysis, are false.
Community Health responded to the suit on the same day in a
press release. In the release, Community Health argued that,
“Tenet’s allegations are completely without merit.”
Tenet Healthcare informed its employees of the suit in a memo,
also released on April 11, 2011.
Hagens Berman is investigating both companies’ claims. Hagens
Berman Partner Reed R. Kathrein is leading the firm’s investigation
from its San Francisco office.
“These allegations are serious and have already had a tremendous
impact on the stock of both Tenet and Community Health,” said Mr.
Kathrein. “Either Community Health will have to come clean or Tenet
will have to account.”
Investors who purchased Community Health or Tenet stock before
April 11, 2011, and who incurred significant losses exceeding
$300,000 are encouraged to speak with Hagens Berman Partner Reed R.
Kathrein at 510-725-3000. Investors can contact the Hagens Berman
legal team via email at CommunityHealth@hbsslaw.com.
The firm is also interested to speak with witnesses who may have
more information about these claims. To learn more, additional
information is available at: www.hbsslaw.com/CommunityHealth.
About Investor Fraud Practice
Hagens Berman is a nationally recognized investor-rights law
firm that provides highly acclaimed fraud recovery and asset
protection services to individual and institutional investors who
have been negatively affected by poor corporate governance, breach
of fiduciary duties, misrepresentation of information, or a failure
of good faith, fair dealing or loyalty. For an in-depth discussion
of securities fraud, corporate governance and investor rights,
please visit our Investor Fraud website or our Meaningful
Disclosure blog.
About Hagens Berman
Seattle-based Hagens Berman Sobol Shapiro LLP is one of the top
class-action law firms in the nation, with offices in Boston,
Chicago, Colorado Springs, Los Angeles, Minneapolis, New York,
Phoenix, San Francisco and Washington, D.C. Founded in 1993, we
represent plaintiffs in class actions and multi-state, large-scale
litigation that seek to protect the rights of investors, consumers,
workers and whistleblowers. More information about the firm is
available at www.hbsslaw.com.
Tenet Healthcare (NYSE:THC)
Historical Stock Chart
From May 2024 to Jun 2024
Tenet Healthcare (NYSE:THC)
Historical Stock Chart
From Jun 2023 to Jun 2024