ATLANTA, Dec. 27, 2002 (PRIMEZONE) -- Chitwood & Harley previously announced the filing on November 4th of the initial class action suit filed in the United States District Court for the Central District of California against Tenet Healthcare Corporation on behalf of all persons who purchased or otherwise acquired the securities of Tenet Healthcare Corporation ("Tenet" or the "Company") (NYSE:THC) from October 3, 2001 through October 31, 2002, inclusive (the "Class Period").
If you are interested in serving as a lead plaintiff in this action, the deadline to file papers seeking your appointment is December 31, 2002. There are certain legal requirements to serve as lead plaintiff, which we would be happy to discuss with you. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. If you wish to discuss this action or have any questions concerning this notice or your rights with respect to this matter, you may contact Jennifer Morris at 1-888-873-3999 (toll-free) or by e-mail at jlm@classlaw.com.
A copy of both the initial complaint in this matter and of the FBI Affidavit that led to the raid on October 31, 2002 on Redding Medical Center are available on our website. The suit alleges that THC and certain of its officers violated the Securities Exchange Act of 1934, as a result of the defendants' issuance of false and misleading statements about the Company's operations and performance, as a result in part of the Company's violations of Generally Accepted Accounting Principles ("GAAP").
The lawsuit claims that during the Class Period defendants misrepresented that THC's financial results were due to the Company's commitment to quality and cost-effective care. Throughout the Class Period, defendants repeatedly stated that Tenet's financials were strong, that the Company's stellar bottom line was attributed to its state-of-the-art facilities and high-quality patient care, and that Tenet was consistently achieving record results. In reality, however, the complaint claims that defendants actually knew that the quality of Tenet's profits were inflated by, among other things, a scheme to wrongfully induce patients to undergo unnecessary and invasive surgeries and coronary procedures. The scheme included unnecessary heart catheterization, including angiogram and intravascular ultrasound, stent placement, angioplasty, coronary artery bypass surgery and heart valve replacement surgery.
The price of THC stock plunged more than 26 percent after federal prosecutors in Sacramento filed an affidavit regarding alleged false billing by two doctors at the company's hospital in Redding, California. Numerous reports concerning the FBI investigation followed. These disclosures shocked the market, causing Tenet's stock to decline to less than $29 per share before closing at $28.75 per share on October 31, 2002, on volume of more than 50 million shares.
Since the initial FBI raid, the SEC has opened an informal file to look particularly into the insider trading that occurred during the Class Period. Tenet insiders have rung up over $140 million in profit from insider sales this year alone. In addition, on December 19th the U.S. Attorney's Office searched a Tenet facility in San Diego.
Plaintiff is represented by Chitwood & Harley, a law firm that concentrates its practice in representing victims of securities fraud and corporate mismanagement, as well as other complex litigation. Chitwood & Harley has been appointed lead counsel in major actions throughout the United States and has been instrumental in recovering billions of dollars on behalf of its clients. Clients and courts alike have praised the results achieved by Chitwood & Harley. Recently, the federal judge in In re BankAmerica Securities Litigation, where the firm negotiated a $490 million recovery for the class, commented favorably on the firm's performance stating: "Class members were well served by experienced attorneys who, through considerable time and effort, obtained a significant recovery for their clients," and, "(a)s the Court has remarked throughout this litigation, class counsel ... have performed at exceptionally high levels, and all parties have been exceedingly well represented."
For more information about Chitwood & Harley, please visit our website at www.classlaw.com or contact Jennifer Morris at 1-888-873-3999 (toll-free) or by e-mail at jlm@classlaw.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca