Health & Fitness
Health and Fitness
Health and Fitness 
Wed, April 13, 2011
Tue, April 12, 2011
Hagens Berman LLP Continues To Investigate Community Health and Tenet for Potential Securities Violations
BERKELEY, Calif.--([ BUSINESS WIRE ])--Hagens Berman LLP, a nationwide, investor-rights law firm, is continuing its investigation of Community Health Systems (NYSE: CYH) (aCommunity Healtha) and Tenet Healthcare (NYSE: THC) for securities law violations. Tenet recently filed a lawsuit alleging that Community Health used improper admissions tactics to inflate its stock price and, as such, committed proxy fraud.
"Either Community Health will have to come clean or Tenet will have to account."
The [ complaint ] was filed in U.S. District Court in Texas by Tenet Healthcare. It 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 ].
On April 11, 2011, after Teneta™s lawsuit against Community Health was 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. Community Health and some analysts have responded that the allegations, based upon statistical analysis, are false.
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
Tenet Healthcare informed its employees of the suit in a [ memo ], also released on April 11, 2011.
Hagens Berman is investigating both companiesa™ claims. Hagens Berman 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
Investors who purchased Community Health or Tenet stock before April 11, 2011, and who incurred significant losses exceeding $300,000 are encouraged to speak with Hagens Berman Partner Reed R. Kathrein at 510-725-3000. Investors can 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 ].