SAN FRANCISCO--(BUSINESS WIRE)--The law firm of Lieff, Cabraser, Heimann & Bernstein, LLP announces that a class action lawsuit has been brought on behalf of all persons who purchased the common stock of Chemed Corporation (“Chemed” or the “Company”) (NYSE: CHE) between February 15, 2010 and November 16, 2011 (the “Class Period”).
If you purchased Chemed common stock during the Class Period, you may move the Court for appointment as lead plaintiff by no later than March 12, 2012. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the action will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.
Chemed shareholders who wish to learn more about the action and how to seek appointment as lead plaintiff should click here or contact Sharon Lee of Lieff Cabraser toll free at (800) 541-7358.
Background on the Chemed Securities Class Litigation
The action is brought against Chemed and certain of its senior officers for violations of the Securities Exchange Act of 1934. Chemed, based in Cincinnati, Ohio, provides hospice care services through its VITAS Innovative Hospice Care (“VITAS”) business segment. Chemed also provides repair and cleaning services.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements concerning the Company’s business and prospects. Specifically, defendants failed to disclose that: (a) Chemed engaged in a scheme to fraudulently bill Medicare for hospice services for patients who were ineligible 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; (b) a significant portion of the Company’s hospice enrollments, revenues and earnings were the direct result of defendants’ fraudulent scheme; (c) in a whistleblower complaint filed under seal, a former VITAS manager had accused the Company of engaging in similar misconduct; (d) the Company failed to maintain adequate internal controls and procedures in its hospice enrollments and Medicare billings; (e) the Company’s financial results were materially overstated; and (f) as a result of the foregoing, defendants lacked a reasonable basis for their positive statements about the Company’s business and prospects.
On November 16, 2011, Bloomberg published an article concerning the whistleblower action brought against Chemed and revealed that a former VITAS manager had accused Chemed of defrauding the federal government by conspiring with health insurers to enroll into hospice Medicare patients who were not dying. According to the article, the U.S. Department of Justice, which is investigating the alleged fraudulent conduct by VITAS, told the court it suspects VITAS of “an extensive scheme” to defraud Medicare and Medicaid of “hundreds of millions of dollars” by falsifying records and hospice certifications. Following this news, the price of Chemed shares fell $6.87 per share, or 11 percent, to close at $50.65 per share on November 16, 2011.
About Lieff Cabraser
Lieff, Cabraser, Heimann & Bernstein, LLP, with offices in San Francisco, New York and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.
Since 2003, the National Law Journal has selected Lieff Cabraser as one of the top plaintiffs’ law firms in the nation. In compiling the list, the National Law Journal examined recent verdicts and settlements in addition to overall track records. Lieff Cabraser is one of only two plaintiffs’ law firms in the United States to receive this honor for the last nine consecutive years.
For more information about Lieff Cabraser and the firm’s representation of investors, please visit http://www.lieffcabraser.com.
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