Settled: July 15, 2014
On July 15, 2014, the court granted final approval to a $6 million cash settlement with Chemed Corporation (Chemed). The settlement is a substantial and certain recovery for members of the class given the expense, risk and delay of continued litigation.
Lead plaintiffs alleged that defendants misrepresented the financial performance of Chemed's VITAS unit and its compliance with Medicare rules and regulations that govern the VITAS segment. The company allegedly failed to disclose that VITAS achieved positive results in large part by systematically enrolling and admitting ineligible, non-terminally ill patients into its hospice care program, in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and rule 10b-5. The Complaint further alleged that lead plaintiffs and other class members purchased or otherwise acquired Chemed capital stock during the class period at artificially inflated prices and were allegedly damaged as a result.
The case is In re Chemed Corp. Securities Litigation, No. 1:12-cv-00028-MRB (S.D. Ohio). Labaton Sucharow and Robbins Geller Rudman & Dowd LLP are the court-appointed lead counsel for the lead plaintiffs, Electrical Workers Pension Fund, Local 103, I.B.E.W. and Greater Pennsylvania Carpenters Pension Fund, and the class. Defendant is Chemed Corporation.
Submit Proof of Claim
If you purchased or otherwise acquired the capital stock of Chemed during the period from February 15, 2010 through May 2, 2013, inclusive (the class period), you may be eligible to recover from the settlement, if you submit a Proof of Claim with supporting documentation by August 8, 2014.
A settlement hearing was held on July 9, 2014 at 1:30 pm before the Honorable Michael R. Barrett at the United States District Court, Southern District of Ohio, Western Division, Potter Stewart United States Courthouse, 100 East Fifth Street, Cincinnati, Ohio 45202.
The deadline for objecting to the settlement or seeking exclusion from the class was June 18, 2014.