WASHINGTON, Nov. 8, 2002 (PRIMEZONE) -- The Law Office of Mark McNair announces a securities class action lawsuit has been filed against Tenet Healthcare Corporation (NYSE:THC). The complaint is on behalf of, and seeks damages for shareholders who purchased the stock from October 3, 2001 through October 31, 2002, inclusive (the "Class Period").
The suit alleges that THC and certain of its officers violated the Securities Exchange Act of 1934, as a result of the defendants' issuance of false and misleading statements about the Company's operations and performance, as a result in part of the Company's violations of Generally Accepted Accounting Principles ("GAAP"). Yesterday, Tenet announced that David Dennis, its chief corporate officer and chief financial officer, and Thomas Mackey, its chief operating officer, are leaving the Company. Today, Tenet's already-battered stock plummeted 46.7% to close at $14.90.
The lawsuit claims that during the Class Period, defendants misrepresented that THC's financial results were due to the Company's commitment to quality and cost-effective care. Throughout the Class Period, defendants repeatedly stated that Tenet's financials were strong, that the Company's stellar bottom line was attributed to its state-of-the-art facilities and high-quality patient care, and that Tenet was consistently achieving record results. In reality, however, the complaint claims that defendants actually knew that the quality of Tenet's profits were inflated by, among other things, a scheme to wrongfully induce patients to undergo unnecessary and invasive surgeries and coronary procedures. The scheme included unnecessary heart catheterization, including angiogram and intravascular ultrasound, stent placement, angioplasty, coronary artery bypass surgery and heart valve replacement surgery.
Prior to today's dramatic drop, last Thursday the price of THC stock plunged more than 26 percent after federal prosecutors in Sacramento filed an affidavit regarding alleged false billing by two doctors at the company's hospital in Redding, Calif. Numerous reports concerning the FBI investigation followed. These disclosures shocked the market, causing Tenet's stock to decline to less than $29 per share before closing at $28.75 per share on October 31, 2002, on volume of more than 50 million shares.
The Law Office of Mark McNair is currently investigating these claims. If you were a purchaser of THC during the period indicated and want to discuss your legal rights or if you have information relevant to the lawsuit, you may e-mail or call the Law Office of Mark McNair. You may contact the Law Office of Mark McNair at 1101 30th Street N.W., Suite 500, Washington, D.C, 20007, by telephone at (877) 511.4717 or (202) 872.4717, or via e-mail at mcnair@justice4investors.com.
If you are a member of the Class, you may move the court no later than December 31, 2002 to serve as lead plaintiff for the Class. In order to serve as lead plaintiff, you must meet certain legal requirements. To be a member of the class you need not take any action at this time, and you may retain counsel of your choice.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca