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Bronstein, Gewirtz & Grossman, LLC Investigates Chemed Corp.


Published on 2011-11-18 09:16:00 - Market Wire
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NEW YORK--([ ])--Attorney Advertising-- Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of the securities of Chemed Corp. (aChemeda or the aCompanya) (NYSE:CHE), concerning whether the company and certain of its officers and directors have violated federal securities laws.

"the HMO defendants to dump non-profitable patients onto hospice, regardless of their qualifications."

On Wednesday November 16, 2011, shares of the Company fell $6.87 or 12% and closed at $50.65, on news that a former Vitas Healthcare Corp manager, Michael Rehfeldt, accused the hospice chain of defrauding the federal government by conspiring with health insurers to enroll Medicare patients who were not facing imminent death - a Medicare requirement for hospice eligibility. The Lawsuit says the arrangement allegedly benefited Vitas by providing hospice patients, while allowing athe HMO defendants to dump non-profitable patients onto hospice, regardless of their qualifications.a The allegations came in a lawsuit unsealed last week in U.S. District Court in Dallas.

The Company has attracted government scrutiny as well as its Medicare-covered patients have doubled to 1.1 million over the last decade. In the same court, the DOJ is seeking internal Vitas documents in an investigation focused on alleged abuses of federal health-insurance programs. The government has told the court it suspects Vitas of aan extensive schemea to defraud Medicare and Medicaid of ahundreds of millions of dollarsa by falsifying records and hospice certifications. The DOJ said in a court filing that it is anot intervening at this timea in the whistleblower suit, although aits investigation of the allegations will continue.a The Texas Attorney Generalas office filed an identical notice.

If you are aware of any facts relating to this investigation, or purchased shares of Chemed Corp., you can assist this investigation by contacting either Peretz Bronstein or Eitan Kimelman of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484 or via email [ eitan@bgandg.com ]. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.

Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of both class and individual litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firmas expertise includes general corporate work, litigation and securities arbitration.

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