TENET HEALTHCARE CORP.

Securities Class Action

Tenet Healthcare reached a $514 million agreement with the U.S. government to resolve a criminal and civil investigation involving kickbacks to Clinica de la Mama.
Class Period
February 28, 2012 to October 3, 2016
Lead Plaintiff Motion Deadline
December 6, 2016
Stock Symbol
THC
Court
Central District of California


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About this action:​A class action has been commenced in the United States District Court for the Central District of California on behalf of purchasers of Tenet Healthcare Corp. (“Tenet”) (NYSE: THC) securities between February 28, 2012 and October 3, 2016  (the “Class Period”).

​If you wish to serve as lead plaintiff, you must move the Court no later than December 6, 2016.  A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

​If you would like more information about getting involved in the Tenet Class Action, please fill out the form to the left, or contact Sheila Feerick at 1-800-221-0015, or email

info@SafirsteinMetcalf.com.  Safirstein Metcalf LLP represents individual and institutional clients in a wide variety of litigation, with an emphasis on class, derivative, and other complex actions on behalf of investors and consumers. The firm handles matters on a contingency fee basis.
 
Hispanic Medical Management, Inc. d/b/a Clinica de la Mama was a Georgia corporation which operated several medical clinics that provided prenatal care to predominantly undocumented Hispanic women in Georgia and South Carolina from at least 1999 to in or around September 2010.According to the lawsuit, Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company illegally paid kickbacks to Clinica to induce the referral of Clinica patients to the Company’s hospitals for labor and delivery; (2) through this scheme, the Company defrauded the Georgia Medicaid program; and (3) as a result, Defendants’ statements about the Company’s business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.

On August 1, 2016, the Company issued a press release during aftermarket hours announcing that it reached an agreement in principle with the U.S. government to resolve the Clinica criminal investigation and civil litigation.

On this news, shares of the Company fell $1.34 per share or approximately 4% from its previous closing price to close at $27.57 per share on August 2, 2016.

On October 3, 2016, the Company issued a press release announcing that it finalized an agreement with the U.S. government to resolve the Clinica criminal investigation and civil litigation.

According to the corresponding agreement:

From at least 2000 through at least 2013, in the Northern District of Georgia and elsewhere, and as described further below, (1) Clinica’s owners and operators, (2) certain executives at the Tenet Hospitals, acting as agents of the Tenet Hospitals, at least in part for the benefit of the Tenet Hospitals, and within the course and scope of their employment and authority at the Tenet Hospitals, and (3) others, agreed that the Tenet Hospitals would pay the owners and operators of Clinica for referring its Medicaid patients (the “Clinica patients”) to the Tenet Hospitals for delivery and arranging for services to be provided to Clinica patients and their newborns at the Tenet Hospitals.

On this news, shares of the Company fell $0.91 per share or approximately 4% from its previous closing price to close at $21.75 per share on October 3, 2016.