NEW YORK, NY / ACCESSWIRE / February 24, 2017 / Pomerantz LLP announces that a class action lawsuit has been filed against DaVita Inc. ("DaVita" or the "Company") (DVA) and certain of its officers. The class action, filed in United States District Court, District of Colorado, is on behalf of a class consisting of investors who purchased or otherwise acquired DaVita securities, seeking to recover compensable damages caused by defendants' violations of the Securities Exchange Act of 1934.
If you are a shareholder who purchased DaVita securities between August 5, 2015 and October 21, 2016, both dates inclusive, you have until April 3, 2017 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
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DaVita provides kidney dialysis services for patients suffering from chronic kidney failure or end-stage renal disease ("ESRD").
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company and its senior executives purposefully steered patients into unnecessary insurance plans in order to maximize profits; (2) the Company was using AKF as a vehicle to facilitate these improper practices; (3) as a result, DaVita's revenues and profits were illegally obtained; (4) in turn, DaVita lacked effective internal controls over financial reporting; and (5) as a result of the foregoing, 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 ("CMS") issued a public request for information regarding alleged steering of Medicare and Medicaid beneficiaries into other plans in order to earn higher reimbursement rates. As part of this request, CMS sent letters to all Medicare-enrolled dialysis centers (including DaVita) informing them of its announcement.
In reaction to the disclosure about the CMS inquiry into the industry and the potential rule changes, DaVita's stock price dropped $3.17 per share, or 4.69%, on unusually heavy trading volume from $67.65 per share on August 18, 2016 to $64.48 per share on August 19, 2016.