A lawsuit was filed by an investor in NYSE:CHE shares over alleged securities laws violations in connection with an alleged Medicare HMO conspiracy at its unit Vitas Healthcare Corp.
San Diego, CA -- (SBWIRE) -- 01/30/2012 -- The Shareholders Foundation announces that an investor in NYSE:CHE shares filed a lawsuit in the U.S. District Court for the Southern District of Ohio against Chemed Corporation over alleged Violations of Federal Securities Laws in connection with a whistleblower in lawsuit of a Medicare HMO conspiracy at Chemed’s unit Vitas Healthcare Corp.
Investors who purchased shares of Chemed Corp. (NYSE:CHE), including but not limited to those who purchased NYSE:CHE shares between February 15, 2010 and November 16, 2011, have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
According to the complaint the plaintiff alleged on behalf of purchasers of Chemed Corp. (NYSE:CHE) common stock during the period between February 15, 2010 and November 16, 2011, that Chemed Corporation and certain of its officers and directors violated the Securities Exchange Act of 1934 by issuing materially false and misleading statements regarding the Company's business and prospects.
On November 16, 2011, a media outlet reported that Vitas Healthcare Corp., a unit of Chemed Corp., has been accused by a whistleblower in lawsuit of a Medicare HMO conspiracy. Additionally, the Department of Justice (“DOJ”) reportedly is seeking internal Vitas Healthcare Corp documents in an investigation focused on alleged abuses of Federal health-insurance programs. According to the article “the government has told the court it suspects Vitas of ‘an extensive scheme’ to defraud Medicare and Medicaid of ‘hundreds of millions of dollars’ by falsifying records and hospice certifications.”
Following the report shares of Chemed Corporation (Public, NYSE:CHE) fell from $57.52 on Nov. 15, 2011 to as low as $48.43 on November 16, 2011 and closed on Friday, Nov. 18 at $49.77.
Those who purchased shares of Chemed Corp. (NYSE:CHE), have certain options and should contact the Shareholders Foundation.