NEW YORK, Nov. 28, 2016 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Tenet Healthcare Corporation (“Tenet” or the “Company”) (NYSE:THC) and certain of its officers. The class action, filed in United States District Court, Northern District of Texas, and docketed under 16-cv-02848, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired Tenet securities between February 26, 2013 and September 30, 2016 inclusive (the “Class Period”). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the “Exchange Act”).
If you are a shareholder who purchased Tenet securities during the Class Period, you have until December 6, 2016 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
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Tenet, together with its subsidiaries, primarily operates acute care hospitals and related healthcare facilities. The Company operates through three segments: Hospital Operations and Other, Ambulatory Care, and Conifer. As of December 31, 2015, the Company operated 86 hospitals, 20 short-stay surgical hospitals, approximately 475 outpatient centers, and 9 private hospitals and clinics, as well as 249 ambulatory surgery centers, 20 imaging centers, and 35 urgent care centers in the United Kingdom.
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) certain of Tenet’s hospitals had paid kickbacks for obstetric referrals; (ii) these kickbacks were in violation of federal law; (iii) these kickbacks subjected Tenet to the risk of heightened regulatory scrutiny, as well as substantial fines; and (iv) as a result of the foregoing, Tenet’s public statements were materially false and misleading at all relevant times.
On August 1, 2016, post-market, Tenet announced that the Company had reached an agreement in principle with federal and state authorities pursuant to which the Company would pay nearly $514 million to settle allegations that four Tenet hospitals in Georgia and South Carolina paid kickbacks for obstetric referrals. Under the settlement, two Tenet subsidiaries would plead guilty to one count of conspiracy to violate federal kickback laws.
On this news, Tenet’s share price fell $1.34, or 4.64%, to close at $27.57 on August 2, 2016.
On October 3, 2016, Tenet issued a press release and filed a Current Report on Form 8-K with the SEC, announcing that the Company had finalized the agreement in principle announced on August 1, 2016.
On this news, Tenet’s share price fell $0.91, or 4.02%, to close at $21.75 on October 3, 2016.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com