Shareholder Rights Law Firm Johnson & Weaver, LLP is investigating whether certain officers or directors of LHC Group, Inc. (Nasdaq: LHCG) violated state or federal laws in connection with a suspected long-term scheme to defraud Medicare. A class action lawsuit has been filed against the Company on behalf of shareholders who purchased LHC securities between July 30, 2008 and October 26, 2011. Frank Johnson, partner at Johnson & Weaver, had this to say about the lawsuit: “If the Company’s officers or directors are responsible for the damage to the Company, then they should be held accountable rather than the Company and its shareholders.”
The class action lawsuit claims that defendants manipulated the number of home visits patients received in order to inflate Medicare payments to LHC and boost the Company’s reported financial results. Medicare pays home healthcare providers such as LHC for each home visit, with bonuses when certain visit thresholds are met. In order to maximize revenue from Medicare, LHC allegedly instructed its healthcare providers to meet these thresholds whether medically necessary or not. A recent news report critical of LHC’s Medicare practices prompted the U.S. Senate Finance Committee to start an investigation. The Senate released a report concluding that “[t]he home health therapy practices identified… at best represent abuses of the Medicare home health program. At worst, they may be… defrauding the Medicare home health program at the expense of taxpayers.”
If you are a long term holder of LHC, preferably since July 2008 or earlier, and would like to know your rights as a shareholder, please contact lead analyst Jim Baker ( firstname.lastname@example.org) or Frank Johnson ( email@example.com) at 619-230-0063.
Johnson & Weaver, LLP is a nationally recognized shareholders’ rights law firm. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com.