BERKELEY, Calif.--(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. Community Health announced on April 15 that, on April 8, 2011, it received a subpoena from the U.S. Department of Health and Human Services (DHHS). The subpoena requests documents relating to emergency department procedures and is connected to an investigation into potential improper Medicare and Medicaid claims.
Investors who purchased Community Health or Tenet stock before April 11, 2011, and incurred significant losses 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 [email protected]. The firm is also interested to speak with witnesses who may have more information about these claims. Additional information is available at www.hbsslaw.com/CommunityHealth.
Community Health’s announcement came four days after Tenet Healthcare filed a lawsuit alleging that Community Health has committed securities fraud through medically unnecessary admissions at its hospitals in order to increase revenue from Medicare and Medicaid. On news of the lawsuit, Community Health’s stock dropped 35 percent to $26.24 per share. At the same time, Tenet’s stock dropped to $6.51, a loss of nearly 14 percent. Some analysts and media reports rebut Tenet’s allegations, claiming that they themselves are misleading. On April 18, 2011, Tenet announced that it is reviewing a new all cash buyout offer from Community Health.
Hagens Berman Partner Reed R. Kathrein is leading the firm’s investigation from its San Francisco office.
“The announcement of a DHHS investigation suggests that Tenet’s allegations should be taken a bit more seriously,” said Mr. Kathrein. “At the same time, Tenet’s stake in this must also be considered in light of Community Health’s unsuccessful takeover attempt. As our investigation continues, we hope to uncover who is telling the truth.”
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.
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.
Firmani + Associates Inc.
Mark Firmani, 206-443-9357
KEYWORDS: United States North America California
INDUSTRY KEYWORDS: Health Hospitals Professional Services Legal