NEW YORK--(BUSINESS WIRE)--
Abraham, Fruchter & Twersky, LLP has commenced an investigation concerning possible violations of federal securities laws and breaches of fiduciary duty to shareholders by the board of directors of Chemed Corporation (“Chemed” or the “Company”)(CHE). Chemed, through its subsidiary Vitas, provides hospice and palliative care services to its patients in the United States through its network of physicians, registered nurses, home health aides, social workers, clergy, and volunteers.
On May 2, 2013, the United States Department of Justice (“DOJ”) disclosed that it had filed a lawsuit under the federal False Claims Act against Chemed and its affiliates alleging that the Company systematically defrauded Medicare. The DOJ’s complaint alleges that Chemed billed Medicare for unnecessary and fraudulent treatments. Specifically, the DOJ alleges that the Company knowingly submitted, or caused the submission of false claims for hospice care for patients who were not terminally ill. The Company also paid bonuses to staff based on the number of patients enrolled in the program and based on patients who were admitted for longer lengths of stay, and took adverse employment actions against marketing representatives who did not meet monthly hospice admissions goals. As a result of this news, shares of Chemed declined more than 15%, on abnormally high trading volume.
If you own common shares of Chemed and would like to discuss this action, or if you have any questions concerning your legal rights as a potential plaintiff, please contact: Jack Fruchter or Arthur J. Chen of Abraham, Fruchter & Twersky, LLP toll free at (800) 440-8986, or via e-mail at firstname.lastname@example.org or email@example.com.
Abraham, Fruchter & Twersky, LLP has extensive experience in securities class action cases, and the firm has been ranked among the leading class action law firms in terms of recoveries achieved by a survey of class action law firms conducted by Institutional Shareholder Services.
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Jack G. Fruchter / Arthur J. Chen