NEW YORK, Nov. 1, 2002 (PRIMEZONE) -- Wolf Popper LLP has filed a securities fraud class action complaint against Tenet Healthcare Corporation (NYSE:THC) and its CEO, Jeffrey C. Barbakow, on behalf of purchasers of THC securities from the opening of trading on October 31, 2002 through the halt of trading on October 31, 2002 at 2:41 p.m. (EST) (the "Class Period"). A copy of the complaint is available from the U.S. District Court for the Southern District of New York or this firm's website www.wolfpopper.com.
Plaintiff has alleged that defendants knew on October 30, 2002, that forty agents from the FBI, Office of Inspector General and Internal Revenue Service had executed search warrants on Tenet's Redding Medical Center, but failed to disclose this information to investors. Defendants had a duty to promptly disclose this material information to investors for the following reasons: (i) As of October 28, 2002, Tenet was already under a cloud of suspicion after an analyst at UBS Warburg downgraded its rating on the Company and issued a report calling into question Tenet's Medicare outlier payments; (ii) On October 28, 2002, defendants proclaimed to investors in no uncertain terms that "Tenet is confident that its hospitals are fully compliant with Medicare rules and regulations, including those governing outlier payments"; (iii) On October 29, 2002, defendants proclaimed, "(W)e are confident that Tenet hospitals are fully compliant with Medicare rules and regulations;" and (iv) On October 30-31, 2002, defendants continued making analyst presentations, and publicly discussed the Company's business, prospects, revenues and earnings from Medicare, and results of operations, with full knowledge of what had transpired on October 30, 2002, and after making the conscious decision to withhold from the market the existence of the FBI raid on one of its hospitals.
Any member of the class who desires to be appointed lead plaintiff in the class action must file a motion with the Court no later than December 31, 2002. Class members must meet certain legal requirements to serve as a lead plaintiff. If you have questions or information regarding this action, or if you are interested in serving as a lead plaintiff in this action, you may call or write:
Wolf Popper LLP, Michael A. Schwartz, Esq. 845 Third Avenue, New York, NY 10022-6689; Tel.: 212.451.9668, Toll Free: 877.370.7703; Fax: 212.486.2093, Toll Free: 877.370.7704; Email: irrep@wolfpopper.com; website: www.wolfpopper.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca