Maternal-fetal and pediatric subspecialty practice Pediatrix Medical Group has been named as a defendant in a shareholder suit alleging that the company broke federal services laws. Pediatrix disclosed the suit in its quarterly SEC filing.
Unlike some shareholder suits, which pertain largely to technical issues, this lawsuit contains a daunting list of meaningful charges. It maintains that officers in the the publicly-traded firm violated their financial duties to the company, broke federal securities laws, managed the company poorly and committed fraud in its awards of stock options for more than 10 years. Earlier this year, Pediatrix had disclosed on its own that it had found 56 backdated grants from the period between April 1997 and August 2000, which resulted in the restating of more than one quarterly report.
To learn more about the suit:
- read this South Florida Business Journal piece
PLUS: Pediatrix just bought a Fairfax, VA based anesthesiology practice which will bring nearly 120 nurse practitioners and anesthesiologist into its fold. Article
HCA pays $20 million to settle shareholder suits. Report
Press Release: Pediatrix Provides Update on Stock Option Review. Report