NEW YORK, Oct. 12, 2016 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Tenet Healthcare Corp. (“Tenet Healthcare” or the “Company”) (NYSE:THC) of the December 6, 2016 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.
The lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of all those who purchased Tenet Healthcare securities between February 28, 2012 and October 3, 2016 (the “Class Period”). The case, Nicholas Pennington v. Tenet Healthcare Corporation et al, No. 2:16-cv-07510 was filed on October 7, 2016, and has been assigned to Judge George H. Wu.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failed to disclose that: (1) Tenet Healthcare illegally paid kickbacks to induce the referral of patients to the Company’s hospitals for labor and delivery; (2) through this, Tenet Healthcare defrauded the Georgia Medicaid program; and (3) as a result, the Company's statements about the its business, operations and prospects were materially false and misleading and/or lacked a reasonable basis.
Specifically, during aftermarket hours on August 1, 2016, the Company issued a press release announcing it had reached an agreement with the U.S. government to resolve a criminal investigation and civil litigation in connection with the aforementioned allegations.
On this news, Tenet Healthcare’s share price fell from $28.91 per share on August 1, 2016 to a closing price of $27.57 on August 2, 2016—a $1.34 or a 4.64% drop.
In addition, on October 3, 2016, the Company issued a press release announcing it had finalized an agreement with the U.S. government to resolve the aforementioned investigation and litigation.
On this news, Tenet Healthcare’s share price fell from $22.66 per share on September 30, 2016 to a closing price of $21.75 on October 3, 2016—a $0.91 or a 4.02% drop.
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Take Action
If you invested in Tenet Healthcare stock or options between February 28, 2012 and October 3, 2016 and would like to discuss your legal rights, visit www.faruqilaw.com/THC. You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com. Faruqi & Faruqi, LLP also encourages anyone with information regarding Tenet Healthcare’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class that is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
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