Securities fraud class action litigation has been filed on behalf of investors in Tenet Healthcare Corporation (“Tenet”) (NYSE: THC). If you purchased or acquired the securities of Tenet between February 28, 2012 and October 3, 2016, inclusive (the “Class Period”), you may move the court for appointment as lead plaintiff by no later than December 6, 2016.
You may retain Lieff Cabraser Heimann & Bernstein, LLP, or other attorneys, as your counsel in the actions. Recognized by the National Law Journal as one of the nation’s top plaintiffs’ law firms, Lieff Cabraser is committed to safeguarding the rights of investors and upholding the integrity of the market. We have significant experience and a successful track record of representing institutional and individual investors in securities and financial fraud litigation.
Tenet investors may choose to have Lieff Cabraser review their claim by completing the contact form below. You can also call Sharon M. Lee of Lieff Cabraser at 1-800-541-7358 to discuss the litigation.
Background on the Tenet Securities Class Litigation
Tenet, headquartered in Dallas, Texas, primarily operates acute care hospitals and related healthcare facilities.
The action alleges that Tenet misrepresented and/or failed to disclose that it perpetrated an illegal conspiracy to defraud the United States and to make illegal kickback payments for patient referrals to certain Tenet hospitals between 2000 and 2013.
The conspiracy involved Hispanic Medical Management, d/b/a “Clinica de la Mama” (or “Clinica”), a Georgia corporation that operated clinics for pregnant Hispanic women, many of whom were undocumented. Clinica received over $12 million in kickbacks from some executives at Tenet hospitals for illegally referring its patients to the hospitals. The hospitals, in turn, improperly billed and received over $146 million in reimbursements from Medicaid and Medicare for services provided to the unlawfully referred patients.
On August 1, 2016, Tenet announced after the close of the market that it had reached an agreement in principle with the United States government to resolve the civil and criminal investigations of the conspiracy. The agreement provided that Tenet would pay a nearly $514 million settlement, enter into a non prosecution agreement (“NPA”), and that two Tenet subsidiaries would plead guilty to a single count indictment, among other terms. On this news, the price of Tenet’s common stock fell $1.34 per share, or 4.64%, from its previous closing price, to close at $27.57 per share on August 2, 2016.
On October 3, 2016, Tenet announced that the settlement was final and revealed details of the NPA. On this news, Tenet’s stock price fell $0.91 per share, or 4.02%, from its previous closing price, to close at $21.75 per share on October 3, 2016.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, Nashville, and Seattle, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.
The National Law Journal has recognized Lieff Cabraser as one of the nation’s top plaintiffs’ law firms for thirteen years. In compiling the list, the National Law Journal examines recent verdicts and settlements and looked for firms “representing the best qualities of the plaintiffs’ bar and that demonstrated unusual dedication and creativity.” Best Lawyers and U.S. News have named Lieff Cabraser as a “Law Firm of the Year” for each year the publications have given this award to law firms.