San Diego, CA -- (SBWIRE) -- 04/18/2012 -- An investigation for current investors in shares of Chemed Corporation (NYSE:CHE) was initiated concerning whether certain officers and directors of Chemed Corporation breached their fiduciary duties by paying executives excessive compensation.
Investors who purchased Chemed Corporation (NYSE:CHE) and currently hold those NYSE:CHE shares have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The investigation by a law firm focuses on whether the directors and officers of Chemed Corporation harmed the company by agreeing to pay certain of Chemed’ senior officers and executives excessive compensation in past years.
Chemed Corporation reported that its annual Revenue rose from $1.14billion in 2008 to $1.35billion in 2011 and its Net Income increased from $67.28million in ’08 to $85.98million in 2011.
Shares of Chemed Corporation (NYSE:CHE) rose from as low as $35.30 in March ’09 to over $71 per share in May 2011.
Then 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.”
Shares of Chemed Corporation (NYSE:CHE) fell from over $71 per share in May 2011 to as low as $48.43 on November 16, 2011.
In January an investor filed a lawsuit in the U.S. District Court for the Southern District of Ohio. The plaintiff alleges that Chemed Corporation violated Federal Securities laws by issuing between February 15, 2010 and November 16, 2011, allegedly materially false and misleading statements regarding its business and prospects.
Since then NYSE: CHE shares regained some value and closed on April 13, 2012 at $62.09 per share.
Despite increasing financial performance from 2008 to 2011, Chemed financial performance increased from 2010 to 2011 only slightly. Its Net Income rose only from $81.83million in 2010 to $85.98million in 2011. Nevertheless the executive compensation of certain top officials of Chemed Corporation increased significantly. For instance, the compensation of the CEO rose from over $5.8million in 2010 to over $6.36million in 2011.
Those who purchased Chemed Corporation (NYSE:CHE) and currently hold those Chemed Corporation (NYSE:CHE) shares have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego