NEW YORK, Nov. 8, 2002 (PRIMEZONE) -- Kirby McInerney & Squire, LLP announces that a class action lawsuit has been filed in the United States District Court for the Central District of California on behalf of all purchasers of Tenet Healthcare Inc. (NYSE:THC) publicly traded securities during the period from October 3, 2001 to October 31, 2002 (the "Class Period").
Please visit our website, which offers summary and detailed information concerning the claims at www.kmslaw.com/new_cases/tenet/tenet.htm, or contact us by phone at (888) 529-4787 or by email at obraun@kmslaw.com.
The action charges Tenet Healthcare, as well as its Chief Executive and Chief Financial Officers, with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The violations, as the complaint alleges, stem from the issuance during the class period of financial results inflated by improper billing and operational practices, which results, thus inflated, had the effect -- during the class period -- of artificially inflating the price of Tenet's publicly traded securities.
When details of such improper practices began to emerge during the end of October 2002, Tenet Healthcare shares quickly lost nearly 60% of their value, falling from $39 to $15 per share. On October 31, 2002, Tenet Healthcare shares fell 26% after Tenet disclosed that the U.S. Attorney's office in Sacramento, California was examining whether doctors at a Tenet hospital performed unnecessary procedures, including open-heart surgeries and angioplasties, in order to generate higher Medicare reimbursements (known as "outlier payments"). The complaint alleges that Tenet Healthcare inflated its revenues and financial results through such practices. On November 8, 2002, Tenet shares lost approximately 50% of their remaining value after announcing: (i) the resignation of Tenet's COO and CFO; and (ii) that it would withdraw previously issued financial guidance pending a review of its billing practices.
Tenet Healthcare has hired an outside medical auditor to review the allegations against its doctors, and has said it will review all of its hospitals that generate high levels of "outlier" payments (which are designed to defray losses suffered by hospitals whose patients' care exceeds fixed reimbursements). The U.S. Department of Health and Human Services said last month that it would review such payments next year as part of its routine work. On average, for-profit hospitals derive 5% of their Medicare reimbursement payments from outlier payments. 23% of Tenet Healthcare's Medicare payments during fiscal 2003 were to be in the form of outlier payments.
Plaintiffs are represented by Kirby McInerney & Squire, LLP, which specializes in complex litigation, including securities class actions. The firm has repeatedly demonstrated its expertise in this field, and has been recognized by various courts which have appointed the firm to major positions in consolidated and multi-district litigation. The firm's efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling hundreds of millions of dollars, and its achievements and quality of service have been chronicled in numerous published decisions. More information about the firm, class actions in general or about the role of the lead plaintiff in a securities class action can be obtained through Kirby McInerney & Squire's website at www.kmslaw.com.
If you are a member of the class described above, you may, no later than December 31, 2002, move the Court to serve as lead plaintiff of the class, if you so choose, pursuant to the Private Securities Litigation Reform Act of 1995 (the "PSLRA"), 15 U.S.C. section 78u-4(a). A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. 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 seek appointment as a lead plaintiff. For more information about the case, its claims, and your rights, please contact:
Ira M. Press, Esq. Orie Braun KIRBY McINERNEY & SQUIRE, LLP 830 Third Avenue, 10th Floor New York, New York 10022 Telephone: (212) 317-2300 or Toll Free (888) 529-4787 E-Mail: obraun@kmslaw.com
More information on this and other class actions can be found on the Class Action Newsline at http://www.primezone.com/ca