Gilman Law LLP, a leading national securities law firm, is actively investigating shareholder allegations that Gentiva Health Services, Inc. (“Gentiva”) and certain of its officers and directors violated the Securities Exchange Act 1940. Gentiva is the nation’s largest home health care provider.
For over 40 years, the lawyers at Gilman Law have been involved in all major aspects of securities fraud litigation. The firm specializes in cases involving stock manipulation, securities fraud, and shareholder rights violations. If you purchased or otherwise acquired shares of Gentiva Health Services, Inc. (NASDAQ: GTIV), during the period between July 31, 2008 and July 20, 2010, and either lost money on the transaction or still hold the shares, you may contact Gilman Law LLP, by no later than November 25, 2011, to discuss your rights, including as to recovery of your losses or to obtain additional information.
False and Misleading Statements: Suit alleges that Gentiva issued false and misleading statements regarding the Company’s business and financial results.
A class action lawsuit has been commenced in the United States District Court for the Eastern District of New York on behalf of purchasers of shares of Gentiva. The shareholder class action suit alleges that Gentiva issued false and misleading statements regarding the Company’s business and financial results. Defendants are under investigation by the Securities and Exchange Commission (“SEC”) in connection to Gentiva’s participation in the Medicare Home Health Prospective Payment System. The Complaint alleges that Gentiva failed to disclose that the Company was improperly increasing the number of in-home therapy visits to patients for the purposes of triggering higher reimbursements rates under the Medicare system. Gentiva also failed to disclose that their strong revenue growth was partially due to the Company’s manipulating the number of in-home visits.
Suit Alleges Artificially Inflated Stock Prices Due To Misleading Sales Projections And Failure To Disclose Negative Business Trends
Gentiva’s misleading sales projections in combination with its failure to disclose negative business trends, lead to artificially inflated prices during the Class Period. Then, after Gentiva announced lower annual revenue projections and the news of the investigation by the SEC broke, Gentiva’s stock declined $1.64 per share, a one-day decline of 8% percent on high volume, to close at $19.96 per share on July 21, 2010.
Fraudulent Billing Practices Continue: Gentiva agreed to pay $12.5 million to settle claims it fraudulently billed Medicare earlier this year, Gentiva now allegedly improperly billed Medicare for salaries and other costs of employees
Gentiva was also the subject of investigation by Federal authorities earlier this year when Gentiva agreed to pay $12.5 million to settle claims that it fraudulently billed Medicare for costs related to Company sales efforts. Gentiva allegedly improperly billed Medicare for salaries and other costs of employees who performed sales functions that were supposed to increase patient utilization.
Gilman Law has extensive experience representing both individual and institutional investors in securities class action suits. Gilman Law has recovered over a billion dollars for its clients and can help you recover any losses that you have incurred as a result of Gentiva’s fraudulent practices. For a free evaluation of your case by securities law attorneys or to obtain additional information, please fill out our free consultation form or CALL TOLL FREE (888) 252-0048.