San Diego, CA -- (SBWIRE) -- 07/25/2012 -- A deadline is coming up on August 13, 2012 in the lawsuit filed for investors of LHC Group, Inc. (NASDAQ:LHCG) over alleged securities laws violations by LHC Group, Inc in connection with certain statements concerning its its Medicare practices.
Investors with a substantial investment in LHC Group, Inc. (NASDAQ:LHCG) shares between July 30, 2008 and October 26, 2011, should get active before the Deadline that is coming up on August 13, 2012, and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
According to the complaint filed in the U.S. District Court for the Western District of Louisiana the plaintiff alleges on behalf of purchasers of LHC Group, Inc. (NASDAQ:LHCG) common stock during the period between July 30, 2008 and October 26, 2011, that LHC Group, Inc. and certain of its officers and directors violated the Securities Exchange Act of 1934 by issuing allegedly materially false and misleading statements regarding the Company's business and prospects.
Specifically, the plaintiff alleges that the Defendants allegedly failed to disclose that the reported growth in LHC Group's home-based healthcare segment between July 30, 2008 and October 26, 2011, was created, in large part, by LHC Group, Inc. engaging in a pattern of practice designed to achieve the most profitable number of therapy visits under the Medicare home health program, manipulating the number of patient visits, regardless of patient need, to maximize revenue.
In May 2010, the LHC Group, Inc received a letter from the U.S. Senate Finance Committee in connection with a media report with the title“ Home Care Yields Medicare Bounty.” LHC Group said in June 2010 it completed its response to the Senate Finance Committee’s letter. Then in July 2010, LHC Group, Inc received a subpoena from the U.S. Securities and Exchange Commission (“SEC”) that included a request for documents related to LHC Group’s participation in the Medicare Home Health Prospective Payment System, as well as the documents and information produced in response to the Senate Finance Committee’s investigation. LHC Group said it produced the documents requested by the initial subpoena and produced additional documents requested by the SEC as part of its review.
In October 2011, LHC Group, Inc received a subpoena from the Department of Health and Human Services Office of Inspector General related to patients who received service from two of LHC Group’s locations in the State of Oregon and some additional documents related to it agencies in Oregon, Washington and Idaho.
Also in October the Senate Committee released a report on its investigation that found that LHC Group, Inc and two other home health care companies engaged in practices that "at best represent abuses of the Medicare home program" and "[a]t worst, they may be examples of for-profit companies defrauding the Medicare home health program at the expense of taxpayers."
Then on October 26, 2011, LHC Group, Inc disclosed that it was lowering its earnings forecast.
Within less than one year NASDAQ:LHCG shares fell from almost $30 in April 2011 to as low as $12.92 per share in November 2011.
On July 24, 2012, NASDAG:LHCG shares closed at $16.94 per share.
Those who purchased LHC Group, Inc. (NASDAQ:LHCG) common stock during the period between July 30, 2008 and October 26, 2011, have certain options and there are strict and short deadlines running. Deadline: August 13, 2012. NASDAQ:LHCG investors should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego