Health & Fitness
Mon, January 16, 2012
WAYNE, Pa.--([ BUSINESS WIRE ])--Ryan & Maniskas, LLP ([ www.rmclasslaw.com/cases/che ]) announces that a class action lawsuit has been filed in United States District Court for the Southern District of Ohio on behalf of purchasers of Chemed Corporation (aChemeda or the aCompanya) (NYSE: CHE) common stock during the period between February 15, 2010 and November 16, 2011 (the aClass Perioda).
"Whistleblower Accuses Chemed Unit of Medicare HMO Conspiracy"
For more information regarding this class action suit, please contact Ryan & Maniskas, LLP (Richard A. Maniskas, Esquire) toll-free at (877) 316-3218 or by email at [ rmaniskas@rmclasslaw.com ] or visit: [ www.rmclasslaw.com/cases/che ].
The complaint charges alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Companyas business and prospects. Specifically, defendants failed to disclose the following adverse facts: (1) that the Company engaged in a scheme to fraudulently bill Medicare for hospice services for patients who did not qualify for hospice and fraudulently shifted the costs of those patients from health maintenance organizations that covered those patients prior to enrollment in hospice to the U.S. government; (2) that a significant portion of the Companyas hospice enrollments, revenues and earnings were the direct result of defendantsa scheme to enroll ineligible patients in hospice and fraudulently bill Medicare for hospice services; (3) that, in a complaint filed under seal, a former VITAS manager had accused the Company of engaging in a Company-wide scheme to enroll ineligible patients in hospice and fraudulently bill Medicare; (4) that the Company failed to maintain adequate internal controls and procedures with respect to hospice enrollments and Medicare billings; (5) that the Companyas financial results were materially overstated as a result of defendantsa fraudulent scheme to enroll ineligible patients in hospice; and (6) that, as a result of the foregoing, defendants lacked a reasonable basis for their positive statements about the Company and its prospects.
On November 16, 2011, a Bloomberg article entitled aWhistleblower Accuses Chemed Unit of Medicare HMO Conspiracya disclosed that a former VITAS manager had accused Chemed of defrauding the federal government by conspiring with health insurers to enroll Medicare patients who were not dying into hospice. The article also discussed a U.S. Department of Justice investigation into fraudulent conduct by VITAS. On this news, shares of Chemed fell $6.87 per share, or 11%, to close at $50.65 per share on November 16, 2011.
If you are a member of the class, you may, no later than March 12, 2012, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Ryan & Maniskas, LLP or other counsel of your choice, to serve as your counsel in this action.
For more information about the case or to participate online, please visit: [ www.rmclasslaw.com/cases/che ] or contact Richard A. Maniskas, Esquire toll-free at (877) 316-3218, or by e-mail at [ rmaniskas@rmclasslaw.com ]. For more information about class action cases in general or to learn more about Ryan & Maniskas, LLP, please visit our website: [ www.rmclasslaw.com ].
Ryan & Maniskas, LLP is a national shareholder litigation firm. Ryan & Maniskas, LLP is devoted to protecting the interests of individual and institutional investors in shareholder actions in state and federal courts nationwide.