Hagens Berman LLP Investigates Community
Health Systems, Inc., Advises Investors with Losses
Exceeding $500,000 to Contact the Firm
April 11, 2011 09:33 PM Eastern Daylight Time
BERKELEY, Calif.--(EON: Enhanced Online News)--Hagens Berman LLP, a nationwide, investor-rights law firm,
is investigating Community Health Systems (NYSE: CYH) (“Community Health”) to determine if the company
violated securities laws after a competitor, Tenet Healthcare (NYSE: THC) filed a lawsuit alleging that Community
Health used improper admissions tactics.
Community Health Systems purports to be a leading operator of general, acute care hospitals. The company
purports to own, operate or lease hospitals in 29 states.
The complaint, filed in U.S. District Court in Texas by Tenet Healthcare, alleges that Community Health employed a
number of improper admissions tactics in order to exaggerate its growth. The complaint argues that physicians
encouraged medically unnecessary admissions at the hospitals in order to increase payments from Medicare. A
summary of the allegations can be found here.
Hagens Berman is investigating claims that Community Health’s stock price was artificially inflated due to these
alleged improper admissions tactics.
HBSS Partner Reed R. Kathrein is leading the firm’s investigation from its San Francisco office.
“These allegations are serious and have already had a tremendous impact on the stock of both Tenet and Community
Health,” said Mr. Kathrein. “Either Community Health will have to come clean or Tenet will have to account.”
According to media reports, on December 9, 2010, Community Health announced an offer to purchase Tenet
Healthcare. Following the announcement, both Community Health and Tenet’s stock increased in value.
However, on April 11, 2011, after Tenet’s lawsuit against Community Health had been filed, media sources
reported that Community Health’s stock had dropped 35 percent to $26.24 per share. At the same time, media
sources reported that Tenet Healthcare’s stock had dropped to $6.51, a loss of nearly 14 percent.
Tenet Healthcare informed its employees of the suit in a memo, also released on April 11, 2011.
Community Health responded to the suit on the same day in a press release. In the release, Community Health
argued that, “Tenet’s allegations are completely without merit.”
Investors who purchased Community Health or Tenet stock before April 11, 2011, and who incurred losses
exceeding $500,000 are encouraged to speak with Hagens Berman Partner Reed R. Kathrein at 510-725-3000.
Investors can also contact the Hagens Berman legal team via email at CommunityHealth@hbsslaw.com.
The firm is also interested to speak with witnesses who may have more information about these claims. To learn
more, additional information is available at: www.hbsslaw.com/CommunityHealth.
About Investor Fraud Practice
Hagens Berman is a nationally recognized investor-rights law firm that provides highly acclaimed fraud recovery and
asset protection services to individual and institutional investors who have been negatively affected by poor
corporate governance, breach of fiduciary duties, misrepresentation of information, or a failure of good faith, fair
dealing or loyalty. For an in-depth discussion of securities fraud, corporate governance and investor rights, please
visit our Investor Fraud Website or our Meaningful Disclosure blog.
About Hagens Berman
Seattle-based Hagens Berman Sobol Shapiro LLP is one of the top class-action law firms in the nation, with offices
in Boston, Chicago, Colorado Springs, Los Angeles, Minneapolis, New York, Phoenix, San Francisco and
Washington, D.C. Founded in 1993, we represent plaintiffs in class actions and multi-state, large-scale litigation that
seek to protect the rights of investors, consumers, workers and whistleblowers. More information about the firm is
available at www.hbsslaw.com.
Firmani + Associates Inc.
Mark Firmani, 206-443-9357