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If you are a current long-term stockholder of shares of LHC Group, Inc. (NASDAQ:LHCG), you have certain options and you should contact the Shareholders Foundation , Inc.
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To have your information reviewed for options and to receive notifications about this case, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Lawsuit Overview
October 29, 2013 (Shareholders Foundation) - An investor who currently holds shares of LHC Group, Inc. (NASDAQ:LHCG) filed a lawsuit against directors of LHC Group, Inc. over alleged breaches of fiduciary duties.
The plaintiff alleges that the defendants knew or should have known that LHC Group, Inc. charged Medicare for unnecessary therapy. The plaintiff says that despite claiming to provide individualized treatments based on patient needs LHC Group, Inc overbooked patients for unneeded therapy to squeeze more money from Medicare between 2006 and 2008 and later after an investigation by the United States Senate Finance Committee agreed to a $65 million to settle those allegations.
However, the plaintiff alleges that shortly after LHC Group, Inc agreed to the $65 million settlement the Senate Finance Committee issued a report “disclosing that the improper and illegal manipulation of the number of therapy visits provided to patients had continued even after the period covered by the settlement.
The plaintiff says that certain defendants boasted of LHC Group's strong and outstanding revenues and profits, all the while knowing that these numbers were based on LHC Group’s allegedly improper and illegal manipulation of the Medicare reimbursement system.
Furthermore, the plaintiff says that the Co-founder and former CEO, and a director sold almost 200,000 shares of LHC Group, Inc. (NASDAQ:LHCG) stock for gross proceeds of almost $7 million based on their knowledge of material nonpublic information concerning LHC Group’s alleged manipulation of therapy visits.
LHC Group, Inc. (NASDAQ:LHCG) reported that its annual Total Revenue rose from $633.87 million in 2011 to $637.57 million in 2012 and that its Net Loss of $13.24 million in 2011 turned into a Net Income of $27.44 million.
Shares of LHC Group, Inc. (NASDAQ:LHCG) grew from $12.35 per share in late 2011 to as high as $26.49 per share. However, LHC Group, Inc. reported a Net income of $43.89 million in 2009, respectively $48.80 million in 2010 and shares of LHC Group, Inc. traded as high as over $30 in early 2011 and as high as $36.51 per share in early 2010.
On October 29, 2013, NASDAQ:LHCG shares closed at $21.12 per share.