SAN DIEGO, Sept. 17, 2013 (GLOBE NEWSWIRE) -- The Shareholders Foundation, Inc. announces that a lawsuit is pending on behalf of certain purchasers of Chemed Corporation (CHE) common stock over alleged violations of Federal Securities Laws by Chemed Corporation in connection with certain allegedly false and misleading statements made between February 15, 2010 and November 16, 2011.
Investors who purchased shares of Chemed Corporation (CHE) in 2010 or earlier and currently hold any of those CHE shares have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The lawsuit was initially filed in January 2012 and the plaintiff alleged that Chemed Corporation, that operates in two segments: VITAS and Roto-Rooter, and certain of its officers and directors with violations of the Securities Exchange Act of 1934.
More specifically, the plaintiff claimed that defendants allegedly misrepresented and/or failed to disclose that , among other things, 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, 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, that the Company failed to maintain adequate internal controls and procedures with respect to hospice enrollments and Medicare billings, that the Company's financial results were materially overstated as a result of defendants' fraudulent scheme to enroll ineligible patients in hospice.
In November 2011 an 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 May 2013 Chemed Corporation announced the receipt of a false claims action complaint. Chemed Corporation said that the government filed a False Claims Act complaint against the Company and certain of its hospice-related subsidiaries.
Those who purchased shares of Chemed Corporation (CHE) have certain options and should contact the Shareholders Foundation, Inc. by e-mail at mail@shareholdersfoundation.com or call +1 (858) 779-1554.
The Shareholders Foundation, Inc. is a professional portfolio legal monitoring and settlement claim filing service, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.