NEW YORK, Feb. 10, 2017 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against DaVita Inc. ("DaVita" or the "Company") (NYSE: DVA) and certain of its officers. The class action, filed in United States District Court, District of Colorado, is on behalf of a class consisting of investors who purchased or otherwise acquired DaVita securities, seeking to recover compensable damages caused by defendants' violations of the Securities Exchange Act of 1934.
If you are a shareholder who purchased DaVita securities between August 5, 2015 and October 21, 2016, both dates inclusive, you have until April 3, 2017 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at email@example.com or 888.476.6529 (or 888.4-POMLAW), toll free, ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
DaVita provides kidney dialysis services for patients suffering from chronic kidney failure or end-stage renal disease ("ESRD").
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company and its senior executives purposefully steered patients into unnecessary insurance plans in order to maximize profits; (2) the Company was using AKF as a vehicle to facilitate these improper practices; (3) as a result, DaVita's revenues and profits were illegally obtained; (4) in turn, DaVita lacked effective internal controls over financial reporting; and (5) as a result of the foregoing, DaVita's business, operations, and prospects were false and misleading and/or lacked a reasonable basis.
On August 18, 2016, The Centers for Medicare & Medicaid Services ("CMS") issued a public request for information regarding alleged steering of Medicare and Medicaid beneficiaries into other plans in order to earn higher reimbursement rates. As part of this request, CMS sent letters to all Medicare-enrolled dialysis centers (including DaVita) informing them of its announcement.
In reaction to the disclosure about the CMS inquiry into the industry and the potential rule changes, DaVita's stock price dropped $3.17 per share, or 4.69%, on unusually heavy trading volume from $67.65 per share on August 18, 2016 to $64.48 per share on August 19, 2016.
On Sunday, October 23, 2016, the St. Louis Post published an article entitled "DaVita encouraged some low-income patients to enroll in commercial plans" that accused DaVita directly of steering clients to private insurers and utilizing its own money to pay for health insurance premiums through the AKF.
In reaction to the disclosures in the St. Louis Post article, DaVita's stock price dropped $2.86 per share, or another 4.69%, from $60.96 per share on Friday, October 21, 2016 to $58.10 per share on Monday, October 24, 2016.
On October 31, 2016, DaVita issued a press release announcing that it was suspending support for applications to the AKF for charitable premium assistance by patients enrolled in minimum essential Medicaid coverage effective immediately.
Then, on January 6, 2017, The Wall Street Journal reported 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 part of the investigation, the U.S. Attorney's Office for the District of Massachusetts had subpoenaed DaVita and the AKF seeking information relating to its charitable premium assistance.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
Robert S. Willoughby
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SOURCE Pomerantz LLP