RM Law announces that a class action lawsuit has been filed in United States District Court for the Central District of California on behalf of all persons or entities that purchased the common stock of Tenet Healthcare Corp. (“Tenet” or the “Company”) (NYSE: THC) between February 28, 2012 and October 3, 2016, inclusive (the “Class Period”).
Tenet shareholders may, no later than December 6, 2016, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of Tenet and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (877) 316-3218 or to sign up online, visit: www.rmclasslaw.com/cases/thc.
The Complaint alleges that throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose that: (1) Tenet unlawfully paid kickbacks to induce the referral of patients to Tenet’s hospitals for labor and delivery; (2) through this scheme, Tenet deceived the Georgia Medicaid program; and (3) consequently, defendants’ statements about Tenet’s business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On October 3, 2016, the U.S. Department of Justice announced that Tenet and two of its hospitals have agreed to pay more than $513 million and enter guilty pleas to resolve criminal and civil claims accusing the companies of conspiring to defraud the government concerning payments of kickbacks to clinics for referrals of pregnant immigrants, who would falsely be told that Medicaid would cover the cost of childbirth and newborn care only if they delivered at a Tenet hospital.
Under the pleas, the subsidiaries will forfeit $145 million, which is the amount the hospitals netted from Medicare and Medicaid for services provided to patients referred as part of the scheme. Tenet will pay $368 million to settle alleged False Claims Act violations in a whistleblower lawsuit, with the U.S. getting $244 million and the state of Georgia getting most of the remainder.
If you are a member of the class, you may, no later than December 6, 2016, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. 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 serve as a lead plaintiff. You may retain RM Law or other counsel of your choice, to serve as your counsel in this action.