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. Tenet recently filed a lawsuit alleging that Community Health used improper admissions tactics to inflate its stock price. As such, the company may have committed proxy fraud.
The complaint, filed by Tenet on April 11, 2011, makes serious allegations that Community Health has committed securities fraud through medically unnecessary admissions at its hospitals in order to increase revenue from Medicare.
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.
Hagens Berman is investigating both companies’ claims. Hagens Berman Partner Reed R. Kathrein is leading the firm’s investigation from its San Francisco office.
“In light of the takeover battle, Tenet has the motive to drive down Community Health’s stock, just as Community Health would have the motive to inflate its stock to help drive takeovers of other hospital chains,” said Mr. Kathrein. ”As more facts come out, we should see who is telling the truth.”
The firm is interested to speak with witnesses who may have more information about these claims. Additional information is available at www.hbsslaw.com/CommunityHealth. Also, 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].
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