May 7, 2013
/PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud at Chemed Corporation ("Chemed" or the "Company") (NYSE: CHE).
May 2, 2013
, the United States Department of Justice ("DOJ") filed a lawsuit against Chemed and its affiliates alleging that the Company had methodically defrauded the national Medicare program. The DOJ action alleges that Chemed aggressively marketed "crisis care"—a type of intensive nursing care reserved for severely ill patients—to patients not needing it, and subsequently billed Medicare for the costs associated. The DOJ action further alleges that the Company billed Medicare for crisis care for patients who never received it, billed Medicare for hospice care for patients who were not terminally ill, and submitted fraudulent records or statements in support of Chemed's Medicare claims.
The lawsuit includes claims under the federal False Claims Act. If Chemed is found liable for these claims, the Company could be liable to pay back three times the amount of money it collected from Medicare as a result of the alleged fraud, plus thousands of dollars in penalty fees for each individual false claim submitted to the government.
On the day following the announcement of the DOJ's lawsuit, shares of Chemed fell nearly 20% in early trading, the Company's largest single-day share price decline in five years.
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Faruqi & Faruqi, LLP also encourages anyone with information regarding Chemed's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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