The investigation on behalf of current long term investors in Gentiva Health Services, Inc. (NASDAQ:GTIV) shares over possible breaches of fiduciary duty by certain directors and officers at Gentiva Health Services continues.

The investigation by a law firm on behalf of current long term investors in stock of Gentiva Health Services, Inc. (NASDAQ:GTIV) concerns whether certain current and/or former officers and members of Gentiva Health Services board of directors and executive officers can be held liable in connection with the alleged Securities Laws violations in the lawsuit by investors who purchased GTIV stock between July 31, 2008 through July 20, 2010. According to the complaint filed in the United States District Court for the Eastern District of New York the plaintiff alleges that Gentiva Health Services, Inc. and certain of its officers violated the Securities Exchange Act of 1934. The plaintiff claims that the Defendants reported between July 31, 2008 and July 20, 2010 growth in revenue and earnings that were, in large part, based on material increases in Medicare revenues and admissions in Gentiva Health Services Home Health segment, but that defendants failed to disclose that Gentiva Health Services improperly increased the number of in-home therapy visits to patients for the purpose of triggering higher reimbursement rates under the Medicare PPS. Gentiva Health Services, Inc. reported over the past four years 12 month total revenue ranging from $1.106billion to $1.239billion. Its Net Income ranged from $20.78million to $151.45million. Gentiva Health Services reported on April 04 respectively on July 04 for the first 13 weeks $297.13million, respectively $297.10million in Total Revenue with a Net Income of $9.32million, respectively $18.92million. According to the complaint in 2008 and 2009, 52% and 68% of Gentivas reported net revenues came from Medicare.

On May 12, 2010, the United States Senate Finance Committee requested information from Gentiva regarding its Medicare utilization rates and amount of therapy services furnished to each beneficiary. On May 14, 2010, the price of Gentiva shares declined from a closing price on May 13, 2010 of $29.75 per share to close at $27.55 per share, a decline of $2.20 per share or approximately 7%. On May 26, 2010 the Senate Finance Committee requested supplemental information relating to Gentiva Health Services compliance program, policies and procedures and billing manuals

Then on July 13, 2010, after the close of trading, Gentiva Health Services, Inc disclosed that it was 'informed by the Securities and Exchange Commission that the Commission has commenced an investigation relating to Gentiva's participation in the Medicare Home Health Prospective Payment System (HH PPS). The Company believes the investigation is similar to the Commission's ongoing investigations and the Senate Finance Committee inquiry previously disclosed by Gentiva and other home health companies. The Commission requested that the company preserve all documents from January 1, 2000 to the present relating to its participation.' On July 13, 2010, the price of Gentiva shares closed at $22.30 per share. On July 14, 2010, during intra-day trading, the price of Gentiva shares declined to $19.91 per share, a decline of 11%, before closing at $21.99 per share. Gentiva Health Services, Inc also disclosed that on July 16, 2010, it received a subpoena from the SEC requesting certain documents in connection with its investigation.

On July 20, 2010, after the close of trading, Gentiva Health Services, Inc disclosed its financial results for the fiscal quarter ended July 4, 2010. Among other things, Gentiva Health Services, Inc said that 'in light of recent softness in home health episodic volumes and the anticipated seasonality in third quarter volumes as experienced by the Company historically, Gentiva has reduced its full-year revenue guidance to a range of $1.20 billion to $1.23 billion from its prior guidance of between $1.23 billion to $1.26 billion.' On July 21, 2010, Gentiva shares declined from a close on July 20, 2010 of $21.60 per share, to close at $19.96 per share, a decline of $1.64 per share.

Over the next months shares of Gentiva Health Services (NASDAQ: GTIV) were able to regain value and recently traded at $26.98 per share.