RADNOR, PA / ACCESSWIRE / February 11, 2017 / The law firm of Kessler Topaz Meltzer & Check, LLP alerts DaVita Inc. (DVA) ("DaVita" or the "Company") shareholders that a class action lawsuit has been filed on behalf of purchasers of the Company's securities between August 5, 2015 and October 21, 2016, inclusive (the "Class Period").
Shareholders who wish to discuss this action and their legal options are encouraged to contact Kessler Topaz Meltzer & Check, LLP (Darren J. Check, Esq., D. Seamus Kaskela, Esq. or Adrienne O. Bell, Esq.) at (888) 299-7706 or at info@ktmc.com.
DaVita shareholders who purchased securities during the Class Period may, no later than April 3, 2017, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this action please visit https://www.ktmc.com/new-cases/davita-inc#join.
DaVita provides kidney dialysis services for patients suffering from chronic kidney failure or end-stage renal disease. At relevant times, DaVita made contributions to the American Kidney Fund ("AKF"), a purported charitable foundation that provides financial assistance toward patients' health insurance premiums.
The shareholder class action complaint alleges that DaVita and certain of its executive officers made a series of materially false and misleading statements and/or failed to disclose material adverse facts about the Company's business, operations, and prospects to investors during the Class Period, including the following: (1) that the Company and its senior executives purposefully steered patients into unnecessary insurance plans in order to maximize profits; (2) that the Company was using AKF as a vehicle to facilitate these improper practices; (3) that, as a result, DaVita's revenues and profits were illegally obtained; and (4) that DaVita lacked effective internal controls over financial reporting. The complaint further alleges that, as a result of the foregoing, the defendants' statements about DaVita's business, operations, and prospects were false and misleading and/or lacked a reasonable basis.
On August 18, 2016, The Centers for Medicare & Medicaid Services issued a public request for information regarding the alleged steering of Medicare and Medicaid beneficiaries into other plans in order to earn higher reimbursement rates. Following this news, shares of the Company's stock declined $3.17 per share, or 4.7%, to close on August 19, 2016 at $64.48 per share.
Then, on October 23, 2016, the St. Louis Post published an article entitled "DaVita encouraged some low-income patients to enroll in commercial plans" which directly accused DaVita of steering clients to private insurers and utilizing its own money to pay for health insurance premiums through the AKF. Following this news, shares of the Company's stock declined an additional $2.86 per share, or 4.7%, to close on October 24, 2016 at $58.10 per share.