SAN DIEGO and NORTH HOLLYWOOD, Calif., Feb. 6, 2014 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP is investigating whether certain officers and directors of the hospitalist services provider, IPC The Hospitalist Company, Inc. (NASDAQ: IPCM), breached their fiduciary duties to shareholders.
Department of Justice Intervenes in False Claims Lawsuit Against IPC
On December 9, 2013, the U.S. Department of Justice announced that the government has intervened in a lawsuit charging IPC with fraud in connection with as much as $125 million in revenues obtained from government medical insurers, including Medicare and Medicaid. According to the lawsuit, IPC, knowingly engaged in systematic overbilling for hospital evaluation and management services billed to Medicare, Medicaid, and other health benefit programs, in violation of the False Claims Act. Specifically, IPC is alleged to have encouraged its physicians to bill at the highest levels regardless of the level of service it provided, trained physicians to use higher level codes and encouraged physicians with lower billing levels to "catch up" to their peers. Further, IPC physicians routinely "upcoded," or sought reimbursement for more expensive medical service than performed. Under the False Claims Act, IPC is liable for three times the damages it caused to the government plus civil penalties.
In light of this news, Robbins Arroyo LLP is investigating whether IPC's board of directors have breached their fiduciary duties to shareholders by failing to implement adequate internal controls to ensure that IPC complied with all applicable laws.
IPC Shareholders Have Legal Options
Robbins Arroyo LLP highlights that IPC shareholders have the option to pursue a shareholder litigation demand or shareholder derivative action through which shareholders aim to hold insider wrongdoers accountable for their actions, prevent future misconduct, and bring long-term value back to the company. Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the shareholder information form on the firm's website.
View the investigation on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/shareholders-rights-blog/ipc-the-hospitalist-company
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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SOURCE Robbins Arroyo LLP