NEW YORK, June 15, 2012 /PRNewswire/ -- Harwood Feffer LLP ( www.hfesq.com) is investigating potential claims against the board of directors of LHC Group Inc. ("LHC" or the "Company") (NASDAQ: LHCG), concerning whether the board has breached its fiduciary duties to shareholders.
LHC is currently the subject of a securities class action lawsuit, as well as SEC and government investigations. The Company is alleged to have been engaged in the manipulation of services provided by its home-based healthcare segment to maximize Medicare billing regardless of patient need.
On May 12, 2010, LHC announced that the Company received a letter from the Senate Finance Committee asking the Company to respond to questions regarding its Medicare billing. On July 13, 2010, the Company disclosed that it had received a request from the SEC to preserve all documents related to LHC's Medicare reimbursement practices.On October 3, 2011, the Senate Finance Committee released a report on its investigation that found that LHC and two other home health care companies engaged in practices that "at best represent abuses of the Medicare home program" and "[a]t worst, they may be examples of for-profit companies defrauding the Medicare home health program at the expense of taxpayers." That day, the price of LHC shares fell $1.42 per share, or 8.3%, to close at $15.64. Finally, on October 26, 2011, LHC disclosed that the Company was lowering its earnings forecast, in part because of a payment to the federal government to settle an inquiry into whether LHC improperly billed for home health services that were medically unnecessary. Our investigation concerns whether the LHC board of directors has breached its fiduciary duties to shareholders, grossly mismanaged the Company, and/or committed abuses of control in connection with the foregoing.
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