The Shareholders Foundation announces that an investigation on behalf of current long-term investors in shares of Chemed Corporation (NYSE:CHE) shares was initiated over potential breaches of fiduciary duties by certain officers and directors at Chemed Corporation.
Investors who purchased shares of Chemed Corporation (NYSE:CHE) in 2010 or earlier and currently hold any of those NYSE:CHE shares have certain options and should contact the Shareholders Foundation at email@example.com or call +1(858) 779 – 1554.
The investigation by a law firm concerns whether certain Chemed officers and directors breached their fiduciary duties and caused damage to the company and its shareholders.
On May 2, 2013, the government filed a False Claims Act complaint against Chemed Corporation and certain of its hospice-related subsidiaries. Prior to that date, Chemed Corporation received various subpoenas from the U.S. Department of Justice and OIG.
The complaint by the government alleges that, since at least 2002, VITAS, and since 2004, Chemed Corporation, submitted or caused the submission of false claims to the Medicare program by billing Medicare for continuous home care services when the patients were not eligible, the services were not provided, or the medical care was inappropriate, and by billing Medicare for patients who were not eligible for the Medicare hospice benefit because they did not have a life expectancy of six months or less if their illnesses ran their normal course.
This complaint seeks treble damages, statutory penalties, and the costs of the action, plus interest.
On August 1, 2013, the government filed its First Amended Complaint. The First Amended Complaint changed and supplemented some of the allegations, but did not otherwise expand the causes of action or the nature of the relief sought against VITAS.
Subsequently the defendants filed a motion to dismiss on September 24, 2013, which the Court denied, except to the extent that claims were filed before July 24, 2002, on September 30, 2014.
Chemed Corporation reported that its annual Total Revenue declined from over $1.43 billion in 2012 to over $1.41 billion in 2013 and that its respective Net Income decreased from $89.30 million to $77.23 million. Shares of Chemed Corporation (NYSE:CHE) grew from $46.50 per share in early 2010 to as high as $111.98 per share in late 2014.
On February 17, 2015, NYSE:CHE shares closed at $107.93 per share.
Those who purchased shares of Chemed Corporation (NYSE:CHE) have certain options and should contact the Shareholders Foundation.
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