Class action suit filed against Columbia/HCA Healthcare Corporation and certain of its officers and directors alleging misrepresentations and insider trading.
The complaint charges Columbia/HCA and certain of its officers and directors with violations of sections 10(b) and 20(a) of the Securities Exchange Act of 1934 for participating in a fraudulent scheme pursuant to which Columbia/HCA: (i) improperly billed Medicare for unnecessary services and/or services more extensive than those actually rendered; (ii) offered loans and/or special opportunities to invest in Columbia/HCA healthcare operations to physicians in a position to make referrals to healthcare facilities anchored by Columbia/HCA hospitals; (iii) paid physicians based on the amount of business they provided to Columbia/HCA; and (iv) provided free, or reduced-rate, rent and/or vacations to physicians in a position to refer patients to healthcare facilities anchored by Columbia/HCA hospitals. The complaint also alleges that the individual defendants took advantage of the artificially inflated price of Columbia/HCA stock by selling or otherwise disposing of more than 4 million shares of Columbia/HCA stock which was worth more than $190 million, before the true facts about the pervasiveness of the defendants' wrongful conduct was revealed and Columbia/HCA's stock collapsed to as low as $33 per share.
Plaintiffs seek to recover damages on behalf of all purchasers of Columbia/HCA common stock during the Class Period (the "Class"). They are represented by several law firms, including Milberg Weiss Bershad Hynes & Lerach LLP and Barrett, Johnston & Parsley.
Milberg Weiss has been actively engaged in commercial litigation, emphasizing securities and antitrust class actions, for more than 20 years. The firm has offices in New York, San Diego, San Francisco and Los Angeles and is active in major litigation pending in federal and state courts throughout the United States. The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm to major positions in complex multi-district or consolidated litigations. Milberg Weiss has taken a lead role in numerous important actions on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total approximately $2 billion. Visit the firm's website at www.milberg.com .
Barrett, Johnston & Parsley has been actively engaged in class action litigation for more than 25 years. The firm has offices in Nashville, Tennessee and is active in major litigation pending in federal and state courts throughout Tennessee.
If you are a member of the Class described above, you may, no later than 60 days from April 8, 1997, move the Court to serve as lead plaintiff, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiffs' counsel, Alan Schulman or Darren Robbins of Milberg Weiss at 800/348-6192 or via e-mail at firstname.lastname@example.org or George Barrett of Barrett, Johnston & Parsley at 615/244-2202.
CONTACT: Milberg Weiss
Alan Schulman or Darren Robbins, 800/348-6192
Barrett, Johnston & Parsley
George Barrett, 615/244-2202
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|Date:||Jun 2, 1997|
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