CASES
Community Health Systems, Inc.
Class Period: Jul 27, 2006 to Apr 8, 2011
Lead Plaintiff Deadline: Jul 8, 2011 + Deadline passed
Summary of Case:
A securities class action has been filed against Community Health Systems, Inc. ("CHS" or the "Company") on behalf of all persons who purchased or otherwise acquired the common stock of CHS from July 27, 2006, through April 8, 2011. This case has been filed in the USDC - Tennessee (Middle).
The Complaint alleges as follows: Throughout the Class Period, defendants repeatedly misled investors about the real basis for its apparent success. Specifically, defendants made materially false and misleading statements about Community Health Systems, Inc.'s ("CHS" or the "Company") compliance with the regulations of Medicare and its chief source of revenue, and also reported to the public revenues, profits, and earnings growth that were artificially inflated by virtue of its systematic deception of the agency. On April 11, 2011, prior to the opening of the markets, Tenet Health Corporation ("Tenet") filed a report on Form 8-K that disclosed the results of its own thorough investigation into CHS' admission practices (the "Form 8-K"). According to Tenet, CHS had, for at least ten years, been improperly admitting patients on an inpatient basis when such patients actually should have been admitted on an outpatient observation basis, resulting in higher payments from Medicare than CHS was entitled to. In the wake of these revelations, CHS common stock fell 35.76 percent, or $14.41, to close at $25.89 on April 11, 2011.
As a result of defendants' wrongful acts and omissions, and the precipitous decline in the market value of the Company's common stock, plaintiff and other class members have suffered significant losses and damages.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.