NEW YORK, March 27, 2017 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in DaVita Inc. (“DaVita” or the “Company”) (NYSE:DVA) of the April 3, 2017 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 District of Colorado on behalf of all those who purchased DaVita securities between August 5, 2015 and October 21, 2016 (the “Class Period”). The case, Peace Officers’ Annuity and Benefit Fund of Georgia v. DaVita Inc. et al., No. 1:17-cv-00304 was filed on February 1, 2017, and has been assigned to Judge William Joseph Martinez.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) DaVita deliberately directed patients into unnecessary insurance plans to maximize profits; (2) the Company was using the American Kidney Fund (“AKF”), a third party charitable 501(c)(3) payor, as a vehicle to facilitate these improper practices; (3) consequentially, DaVita’s revenues and profits were illegally obtained; (4) consequentially, DaVita lacked effective internal controls over financial reporting; and (5) as a result, the Company’s statements about its business, operations, and prospects were false and misleading and/or lacked a reasonable basis.
Specifically, on August 18, 2016, The Centers for Medicare & Medicaid Services issued a public request for information regarding the alleged steering of Medicare and Medicaid beneficiaries into other plans in order to earn higher reimbursement rates. Then, on October 23, 2016, the St. Louis Post published an article which directly accused DaVita of steering clients to private insurers and utilizing its own money to pay for health insurance premiums through the AKF. Lastly, on January 6, 2017, The Wall Street Journal reported, among other things, that investigators from the U.S. Department of Justice “are probing a controversial arrangement under which kidney-care companies support charitable efforts to help patients pay health-insurance premiums, according to disclosures from major dialysis providers.” As a result of these disclosures, shares of DaVita significantly decline, causing harm to investors.
Request more information now by clicking here: www.faruqilaw.com/DVA. There is no cost or obligation to you.
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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 DaVita’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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