PHILADELPHIA, Nov. 13, 2002 (PRIMEZONE) -- Spector, Roseman & Kodroff, P.C. today announced that 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 Corporation ("Tenet") (NYSE:THC) publicly traded securities during the period between October 3, 2001 and October 31, 2002 (the "Class Period").
The complaint charges Tenet and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Tenet, through its subsidiaries, owns or operates general hospitals and related health care facilities serving communities in the United States. The complaint alleges that during the Class Period, defendants represented that Tenet's favorable financial results were due to its commitment to quality and cost-effective care. Throughout the Class Period, defendants repeatedly stated that Tenet's financials were strong, 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. Defendants actually knew that the quality of Tenet's profits were inflated by, among other things, wrongfully inducing patients into undergoing unnecessary and invasive surgeries. Defendants knowingly or in conscious disregard for the truth engaged in a scheme to cause patients to undergo unnecessary invasive coronary procedures. The scheme included unnecessary heart catheterizaton, including angiogram and intravascular ultrasound, stent placement, angioplasty, coronary artery bypass surgery and heart valve replacement surgery.
On October 31, 2002, The Associated Press issued a press release entitled, "Tenet Healthcare Stock Plunges After Report of Investigation." The press release stated in part: "Shares of Tenet Healthcare Corp. plunged more than 26 percent Thursday after federal prosecutors in Sacramento filed an affidavit regarding alleged false billing by two doctors at the company's hospital in Redding, Calif. The stock was also hurt by a rumor, denied by the company, that the FBI had searched its corporate headquarters in Santa Barbara, Calif." 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.
If you purchased Tenet securities during the Class Period, you may, no later than December 31, 2002 move to be appointed as a Lead Plaintiff in this class action. A Lead Plaintiff is a representative, chosen by the Court, that acts on behalf of other class members in directing the litigation. The Private Securities Litigation Reform Act of 1995 directs Courts to assume that the class member(s) with the "largest financial interest" in the outcome of the case will best serve the class in this capacity. Courts have discretion in determining which class member(s) have the "largest financial interest," and have appointed Lead Plaintiffs with substantial losses in both absolute terms and as a percentage of their net worth. If you have sustained substantial losses in Tenet securities during the Class Period, please contact Spector, Roseman & Kodroff, P.C. at classaction@srk-law.com for a more thorough explanation of the Lead Plaintiff selection process. If you have relatively small losses, your ability to participate in any recovery will be protected by the Lead Plaintiff(s), and you need take no affirmative steps at this time.
To join this action online, please visit http://www.srk-law.com/dbjoinaclassaction.asp. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel Robert M. Roseman toll-free at 888-844-5862 or via E-mail at classaction@srk-law.com. For more detailed information about the firm please visit its website at http://www.srk-law.com.
Spector, Roseman & Kodroff, P.C., located in Philadelphia, Pennsylvania and San Diego, California, concentrates its practice in complex litigation including actions dealing with securities laws, antitrust, contract and commercial claims. The firm is active in major litigation pending in federal and state courts throughout the United States. The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm as lead counsel in numerous major class actions involving violations of the federal securities laws and the federal antitrust laws, and consumer fraud. As a result of the efforts of the firm, and its members, hundreds of millions of dollars have been recovered on behalf of thousands of defrauded shareholders and companies.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca