DaVita Inc. (NYSE:DVA) Long-Term Investor Alert: Lawsuit Alleges Wrongdoing by Certain Directors
A lawsuit was filed by a current stockholder of shares of DaVita Inc. (NYSE:DVA) over alleged breaches of fiduciary duties by certain directors of DaVita Inc. and other current long-term NYSE:DVA investors should contact the Shareholders Foundation.
San Diego, CA -- (SBWire) -- 08/13/2012 --A current investor in shares of DaVita Inc. (NYSE:DVA) filed a lawsuit against certain directors of DaVita Inc. over alleged wrongdoing that cost DaVita a $78 million legal settlement.
Investors who are current long-term stockholders of hares of DaVita Inc. (NYSE:DVA), have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
In 2002 whistleblower lawsuit was filed by a former employee against DaVita over its Epogen practices over a 10year period
On July 3, 2012, the Company announced the settlement of a Qui Tam Action, in connection with which the Company will pay $55million plus attorneys’ fees, resulting in a second quarter 2012 charge of $78 million.
In addition, so the lawsuit, federal authorities in Colorado have launched a grand jury investigation into DaVita’s billing practices, as well as alleged illegal kickbacks provided to referring physicians, in connection with which certain current and former directors and executive officers of the Company have received subpoenas to testify before the grand jury. Furthermore, so the plaintiff, numerous other investigations of the Company’s business practices are pending as well, including by the U.S. Attorney’s Office for the Eastern District of Missouri, the U.S. Attorney’s Office for the Eastern District of New York, and the Office of Inspector General of the Department of Health and Human Services (“OIG”) in Dallas, Texas.
The plaintiff alleges that in violation of their fiduciary obligations to DaVita Inc., certain defendants each knowingly played a role in causing or otherwise allowing the Company to engage in the unlawful conduct as DaVita, with the knowledge and approval of the certain Defendants, allegedly has been systematically engaging in a fraudulent scheme to waste, overuse and overprescribe certain medications known as Epogen in order to receive the maximum reimbursements from the federal government, thereby bilking taxpayers out of millions of dollars. The plaintiff says that these practices violated numerous state and federal laws and ultimately cost or will cost the company $78 million.
On August 10, 2012, NYSE:DVA shares closed at $96.68 per share.
Those who are current long-term investors of hares of DaVita Inc. (NYSE:DVA), have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego
Media Relations Contact
Shareholders Foundation, Inc.
View this press release online at: http://rwire.com/158434