NEW YORK, July 6, 2012 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud at LHC Group, Inc. ("LHC" or the "Company") (NASDAQ: LHCG).
The investigation focuses on whether the Company and its executives violated federal securities laws by failing to disclose that the reported growth in LHC's home-based healthcare segment was created, in large part, by defrauding the Medicare home health program at the expense of taxpayers.
On April 26, 2010, The Wall Street Journal published an article entitled "Home Care Yields Medicare Bounty" which detailed an analysis of Medicare payments to home health-care companies (such as LHC) and questioned whether some companies were taking advantage of the Medicare reimbursement system. In May 2010, the Senate Finance Committee launched an investigation into the allegations contained within this article, and shortly thereafter, LHC issued a press release announcing that the Company had received a request for information from the Committee.
The Senate Finance Committee released a report on October 3, 2011 analyzing the home therapy practices of LHC and other companies in the industry. That report concluded that "[t]he home health therapy practices identified at [LHC] . . . at best represent abuses of the Medicare home health program. At worst, they may be examples of . . . defrauding the Medicare home health program at the expense of taxpayers." Following the release of this report, stock in LHC fell from $17.06 to $15.01 per share, a two-day decline of 12%.
Finally, on October 26, 2011, the Company issued a press release announcing that it was lowering its earnings forecast. On this news, the price of LHC's stock dropped over 15%, closing at $15.89 on October 27, 2011, from a previous close of $18.84.
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If you purchased LHC securities between July 30, 2008 and October 26, 2011 and would like to discuss your legal rights, visit www.faruqilaw.com/LHCG. You can also contact us by calling Juan Monteverde, Richard Gonnello or Francis McConville toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org, email@example.com or firstname.lastname@example.org. Faruqi & Faruqi, LLP also encourages anyone with information regarding LHC's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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Attn: Juan Monteverde, Esq.
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Francis McConville, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
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