CASES
Gentiva Health Services, Inc. (2011)
Class Period: Jul 31, 2008 to Sep 30, 2011
Lead Plaintiff Deadline: Dec 12, 2011 + Deadline passed
Summary of Case:
A securities class action has been filed against Gentiva Health Services, Inc. ("Gentiva" or the "Company") on behalf of all who purchased or otherwise acquired publicly traded securities of Gentiva between July 31, 2008 to September 30, 2011, 2011. This case has been filed in the USDC - New York (Eastern).
The Complaint alleges that During the Class Period, Defendants issued materially false and misleading statements regarding the Company's business and financial results. Specifically, Defendants failed to disclose that the Company was improperly increasing the number of in-home therapy visits to patients for the purpose of triggering higher reimbursement rates under the Medicare system. As a result of Defendants' false and misleading statements, Gentiva's stock traded at artificially inflated prices during the Class Period, reaching a high of $30.50 per share on April 14, 2010.
On May 13, 2010, The Wall Street Journal published an articled entitled "Senators Question In-Home Caregivers." The article disclosed that the Senate Finance Committee was investigating the practices of home health-care companies, including Gentiva, that provide in-home therapy visits reimbursed by Medicare. According to the article, the committee was investigating whether the companies deliberately boosted the number of home therapy visits to trigger higher Medicare reimbursements. The Committee requested information on Gentiva's home therapy visits from 2006 to 2009. According to the article, Sen. Charles Grassley, a member of the committee, stated: "[I]t appears that either the home health care reimbursement policy is flawed, some companies are gaming the system, or both. We're working to figure out what's going on." Gentiva's stock price dropped sharply as a result of this disclosure. On May 13, 2010, Gentiva shares declined $2.20 per share to close at $27.55 per share - a drop of 7% on high volume.
As a result of Defendants' false statements, Gentiva securities traded at artificially inflated levels during the Class Period. However, as the truth was gradually revealed to the market, the Company's share price declined dramatically.
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.