NEW YORK, Nov. 19, 2002 (PRIMEZONE) -- Kaplan Fox (kaplanfox.com) filed a class action on November 18, 2002 against Tenet Healthcare Corporation ("Tenet" or the "Company") (NYSE:THC) and certain of its officers and directors, in the United States District Court for the Central District of California. This suit is brought on behalf of all persons or entities, other than defendants, who purchased Tenet securities between July 26, 2000 and November 7, 2002, inclusive (the "Class Period").
The complaint alleges that Tenet and certain of its officers and directors violated the federal securities laws. The Class Period begins on July 26, 2000, the date on which Tenet announced its year-end 2000 results. The Class Period ends on November 7, 2002, the date Tenet's Chief Operating Officer and Chief Financial Officer left the Company and the Company revealed in a conference call that its Medicare "outlier" payments in fiscal year 2002 were $763 million.
The complaint alleges, among other things, that Tenet had failed to disclose the significance and impact of its Medicare "outlier" payments on its financial results and future business prospects in its SEC filings. The above news came on the heels of news that two doctors at Tenet's Redding Medical Center were accused of performing numerous unnecessary surgical procedures, and that on October 31, 2002, federal agents performed a raid of the facility relating to the allegations.
During the Class Period, defendant Mackey reaped substantial gains by selling his personal shares. He sold more than 2.5 million shares during the Class Period, for proceeds of approximately $150 million.
On the November 7 news, the Company's share price fell 47% to $14.90, after a 52-week average price of $44.75. As a result of the defendants' false and misleading statements, Tenet securities traded at artificially high levels during the Class Period. Plaintiff and other members of the Class were damaged thereby.
Plaintiff seeks to recover damages on behalf of the proposed Class and is represented by Kaplan Fox & Kilsheimer LLP. Our firm, with offices in New York, San Francisco, Chicago and New Jersey, has many years of experience prosecuting investor class actions and actions involving financial fraud. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com.
If you are a member of the proposed Class, you may move the court no later than December 31, 2002 to serve as a lead plaintiff for the Class. In order to serve as a lead plaintiff, you must meet certain legal requirements.
If you have any questions about this Notice, the action, your rights, or your interests, please e-mail us at mail@kaplanfox.com or contact:
Frederic S. Fox, Esq. Shelley Thompson, Esq. Kaplan Fox & Kilsheimer LLP 805 Third Avenue, 22nd Floor New York, NY 10022 (800) 290-1952 (212) 687-1980 Fax: (212) 687-7714 E-mail address: mail@kaplanfox.com Jonathan K. Levine, Esq. Laurence D. King, Esq. Kaplan Fox & Kilsheimer LLP 601 Montgomery Street San Francisco, CA 94111 (415) 772-4700 Fax: (415) 772-4707 E-mail address: mail@kaplanfox.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca