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.
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
, 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%.
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
October 27, 2011
, from a previous close of
Request more information now by clicking here: www.faruqilaw.com/LHCG. There is no cost or obligation to you.
If you purchased LHC securities between
July 30, 2008
October 26, 2011
and would like to discuss your legal rights, visit
. You can also contact us by calling
toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to
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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