Chemed Pays $6M To Exit Investors' Medicare Fraud Suit
February 7, 2014
Jonathan Gardner and Christopher J. Keller attain $6M settlement in scheme to defraud Medicare and Medicaid
On behalf of the lead plaintiffs Electrical Workers Pension Fund, Local 103, I.B.E.W. and Greater Pennsylvania Carpenters Pension Fund, Labaton Sucharow securities litigation partners Jonathan Gardner and Christopher Keller and their co-counsel filed a motion for preliminary approval of a $6 million cash settlement from Chemed Corp. The settlement is a substantial and certain recovery for members of the class given the expense, risk and delay of continued litigation.
The 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, violating 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.