SAN DIEGO, June 13, 2012 (GLOBE NEWSWIRE) -- On June 13, 2012, Scott+Scott LLP filed a class action complaint in the United States District Court for the Western District of Louisiana on behalf of purchasers of LHC Group, Inc. (Nasdaq:LHCG) ("LHC" or the "Company") common stock during the period between July 30, 2008 and October 26, 2011, inclusive (the "Class Period"), seeking remedies under the Securities Exchange Act of 1934 (the "Exchange Act").
If you purchased the common stock of LHC during the Class Period and wish to serve as a lead plaintiff in the action, you must move the Court no later than August 13, 2012. Any member of the investor class may move the Court to serve as lead plaintiff through counsel of its choice, or may choose to do nothing and remain an absent class member. If you wish to discuss this action or have questions concerning this notice or your rights, please contact Scott+Scott (scottlaw@scott-scott.com, (800) 404-7770, (860) 537-5537) or visit the Scott+Scott LHC website for more information: http://www.scott-scott.com/cases/new/securities-fraud-litigation-1687-lhc-group-inc-lhcg.html
There is no cost or fee to you.
The securities class action charges LHC and certain of its officers and directors with violations of the Exchange Act. The Company, together with its subsidiaries, provides post-acute health care services primarily to Medicare beneficiaries throughout the United States. LHC is headquartered in Lafayette, Louisiana.
The complaint filed in the action alleges that, throughout the Class Period, the Defendants issued materially false and misleading statements regarding the Company's business and prospects. Specifically, the complaint alleges that the Defendants failed to disclose that the reported growth in LHC's home-based healthcare segment during the Class Period was created, in large part, by the Company engaging in a pattern of practice designed to achieve the most profitable number of therapy visits under the Medicare home health program, manipulating the number of patient visits, regardless of patient need, to maximize revenue.
The complaint alleges that the truth began to come to light on May 12, 2010, when LHC announced that the Company received a letter from the Senate Finance Committee asking LHC to respond to questions regarding therapy utilization in prior years. It is alleged that this partial disclosure caused LHC's stock price to sharply decline, removing some of the stock inflation. Then, following the Company's July 13, 2010 announcement that it had received a request from the Securities and Exchange Commission to preserve all documents relating to LHC's Medicare reimbursement practices, the Company's stock fell further on heavy trading volume. The complaint alleges that this decrease in the price of LHC's stock was a result of some of the artificial inflation caused by Defendants' misleading statements coming out of the price.
On October 3, 2011, the Senate Committee released a report on its investigation that found that LHC and two other home health care companies engaged in practices that "at best represent abuses of the Medicare home program" and "[a]t worst, they may be examples of for-profit companies defrauding the Medicare home health program at the expense of taxpayers." That day, the price of LHC shares fell $1.42 per share, or 8.3%, to close at $15.64. Finally, on October 26, 2011, LHC disclosed that the Company was lowering its earnings forecast, in part because of a payment to the federal government to settle an inquiry into whether LHC improperly billed for home health services that were medically unnecessary. On this news, LHC's stock price fell an additional 15% in a single trading session.
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide.