NEW YORK, Dec. 13, 2002 (PRIMEZONE) -- Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com) has filed a class action lawsuit in the United States District Court for the Central District of California (Western Division) against Tenet Healthcare Corporation ("Tenet" or the "Company") (NYSE:THC) and three of the Company's senior officers on behalf of all persons or entities who purchased or otherwise acquired the securities of Tenet during the period between October 3, 2001 and November 7, 2002 (the "Class Period"). The lawsuit charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by issuing false and misleading statements concerning the Company's results and operations, all of which served to artificially inflate the Company's stock price.
The Complaint alleges that, throughout the Class Period, defendants represented that Tenet's favorable financial results were due to its commitment to quality and cost-effective care. Throughout the Class Period, defendants repeatedly stated that Tenet's financials were strong, the Company's stellar bottom line was attributed to its state-of-the-art facilities and high-quality patient care, and that Tenant was consistently achieving record results. However, it is alleged that Tenet's profits and financial condition were inflated by, among other things, (i) the Company's policy of charging what it ultimately conceded was "too aggressive" prices for its "outlier" patients; i.e., those that required additional and expensive services; and (ii) wrongfully inducing patients into undergoing unnecessary and invasive surgeries at Tenet's key profit center at Redding Medical Center ("RMC").
On October 28, 2002, disclosures of overcharging began to surface when a UBS Warburg analyst first challenged the Company's exposure to charges of Medicare violations in connection with its outlier payments policy. Thereafter, on October 30, 2002, the Company's RMC facility was raided by the FBI, and on November 7, 2002, Tenet announced that its two top executives -- David L. Dennis (the chief financial officer and chief corporate officer) and Thomas B. Mackey (the chief operating officer) -- would leave the Company amidst revelations that a federal investigation was being launched into allegations that Tenet bilked Medicare reimbursements through over-aggressive pricing policies. Following these disclosures, Tenet's stock price fell 72%, and lost approximately $16 billion in market value. As a further result of these revelations, Standard & Poor's lowered Tenet's debt rating to one level above "junk-bond" status.
If you purchased the securities of Tenet during the Class Period, you have until December 31, 2002 to ask the Court to appoint you as lead plaintiff for the Class. In order to serve as lead plaintiff, you must meet certain legal requirements. If you wish to review a copy of the Complaint, or if you would like to discuss this action or have any questions, please contact Andrew G. Tolan, Esq. of the Pomerantz firm at 888-476-6529 (or (888) 4-POMLAW), toll free, or at agtolan@pomlaw.com by e-mail. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
The Pomerantz firm, which has offices in New York and Chicago, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz firm pioneered the field of securities class actions. Today, more than 50 years later, the Pomerantz firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.