NEW YORK--(BUSINESS WIRE)--Levi & Korsinsky announces that a class action lawsuit has been commenced in the United States District Court for the Southern District of Ohio on behalf of investors who purchased Chemed Corporation (“Chemed” or the “Company”) (NYSE: CHE) stock between February 15, 2010 and November 16, 2011.
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The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company’s business and prospects. Specifically, the complaint alleges that defendants misrepresented and/or failed to disclose the following adverse facts: (a) that the Company engaged in a scheme to fraudulently bill Medicare for hospice services for patients who did not qualify for hospice; (b) 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; (c) that a significant portion of the Company’s hospice enrollments, revenues and earnings were the direct result of defendants’ scheme to enroll ineligible patients in hospice and fraudulently bill Medicare for hospice services; (d) 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; (e) that the Company failed to maintain adequate internal controls and procedures with respect to hospice enrollments and Medicare billings; (f) that the Company’s financial results were materially overstated as a result of defendants’ fraudulent scheme to enroll ineligible patients in hospice; and (g) 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 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. In reaction to these disclosures, on November 16, 2011 shares of Chemed stock fell $6.87 per share to close at $50.65 per share.
If you suffered a loss in Chemed you have until March 12, 2012 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff. To obtain additional information, contact Joseph E. Levi, Esq. either via email at jlevi@zlk.com or by telephone at (877) 363-5972, or visit http://www.zlk.com/chemed-che.html.
Levi & Korsinsky has expertise in prosecuting investor securities litigation and extensive experience in actions involving financial fraud and represents investors throughout the nation, concentrating its practice in securities and shareholder litigation. Attorney advertising. Prior results do not guarantee similar outcomes.