Health & Fitness
Health and Fitness
Health and Fitness 
Tue, April 12, 2011
Mon, April 11, 2011
Hagens Berman LLP Investigates Community Health Systems, Inc., Advises Investors with Losses Exceeding $500,000 to Contact the
BERKELEY, Calif.--([ BUSINESS WIRE ])--Hagens Berman LLP, a nationwide, investor-rights law firm, is investigating Community Health Systems (NYSE: CYH) (aCommunity Healtha) to determine if the company violated securities laws after a competitor, Tenet Healthcare (NYSE: THC) filed a lawsuit alleging that Community Health used improper admissions tactics.
"These allegations are serious and have already had a tremendous impact on the stock of both Tenet and Community Health"
Community Health Systems purports to be a leading operator of general, acute care hospitals. The company purports to own, operate or lease hospitals in 29 states.
The [ complaint ], filed in U.S. District Court in Texas by Tenet Healthcare, alleges that Community Health employed a number of improper admissions tactics in order to exaggerate its growth. The complaint argues that physicians encouraged medically unnecessary admissions at the hospitals in order to increase payments from Medicare. A summary of the allegations can be found [ here ].
Hagens Berman is investigating claims that Community Healtha™s stock price was artificially inflated due to these alleged improper admissions tactics.
HBSS Partner Reed R. Kathrein is leading the firma™s investigation from its San Francisco office.
aThese allegations are serious and have already had a tremendous impact on the stock of both Tenet and Community Health,a said Mr. Kathrein. aEither Community Health will have to come clean or Tenet will have to account.a
According to media reports, on December 9, 2010, Community Health announced an offer to purchase Tenet Healthcare. Following the announcement, both Community Health and Teneta™s stock increased in value.
However, on April 11, 2011, after Teneta™s lawsuit against Community Health had been filed, media sources reported that Community Healtha™s stock had dropped 35 percent to $26.24 per share. At the same time, media sources reported that Tenet Healthcarea™s stock had dropped to $6.51, a loss of nearly 14 percent.
Tenet Healthcare informed its employees of the suit in a [ memo ], also released on April 11, 2011.
Community Health responded to the suit on the same day in a [ press release ]. In the release, Community Health argued that, aTeneta™s allegations are completely without merit.a
Investors who purchased Community Health or Tenet stock before April 11, 2011, and who incurred losses exceeding $500,000 are encouraged to speak with Hagens Berman Partner Reed R. Kathrein at 510-725-3000. Investors can also contact the Hagens Berman legal team via email at [ CommunityHealth@hbsslaw.com ].
The firm is also interested to speak with witnesses who may have more information about these claims. To learn more, additional information is available at: [ www.hbsslaw.com/CommunityHealth ].
[ About Investor Fraud Practice ]
Hagens Berman is a nationally recognized investor-rights law firm that provides highly acclaimed fraud recovery and asset protection services to individual and institutional investors who have been negatively affected by poor corporate governance, breach of fiduciary duties, misrepresentation of information, or a failure of good faith, fair dealing or loyalty. For an in-depth discussion of securities fraud, corporate governance and investor rights, please visit our [ Investor Fraud Website ] or our [ Meaningful Disclosure blog ].
Seattle-based Hagens Berman Sobol Shapiro LLP is one of the top class-action law firms in the nation, with offices in Boston, Chicago, Colorado Springs, Los Angeles, Minneapolis, New York, Phoenix, San Francisco and Washington, D.C. Founded in 1993, we represent plaintiffs in class actions and multi-state, large-scale litigation that seek to protect the rights of investors, consumers, workers and [ whistleblowers ]. More information about the firm is available at [ www.hbsslaw.com ].