A class action lawsuit has been filed in the U.S. District Court for the Middle District of Tennessee on behalf of purchasers of Community Health Systems, Inc. ("CHS") securities between July 27, 2006 and April 8, 2011, inclusive (the "Class Period"). The action charges CHS and certain of its officers and directors with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The Complaint alleges that, throughout the Class Period, the Company's financial results were artificially inflated by virtue of the fact that CHS was systematically overcharging Medicare, one of its principal sources of revenue.
On April 15, 2011, Community Health announced that it had received a subpoena from the U.S. Department of Health and Human Services (DHHS). The subpoena reportedly requests documents relating to emergency department procedures and is connected to an investigation into potential improper Medicare and Medicaid claims. This announcement came on the heels of a lawsuit filed by Tenet Healthcare alleging that Community Health committed securities fraud through medically unnecessary admissions at its hospitals in order to increase revenue from Medicare and Medicaid. On the news, Community Health’s stock price dropped more than 40%.
If you are a current shareholder and or purchased shares between July 27, 2006 and April 8, 2011 and would like to discuss your options of exercising your rights as a shareholder, which include ensuring that the company is getting the highest possible price for the company, and that the board of directors will act in the best interest of the shareholders, please contact us.
Please submit the following information so we can determine if you qualify for the suit. If you don't know all the specific details, partial information is also acceptable.