Healthways Settles Medicare Securities Suit For $24M

Law360, New York (June 4, 2010, 4:28 PM EDT) -- A federal judge has approved a $23.6 million settlement in a securities case against Healthways Inc., whose principals allegedly lied to investors about the company's success in a Medicare pilot program, artificially inflating share prices.

Judge Todd Campbell of the U.S. District Court for the Middle District of Tennessee gave his preliminary approval to the payout Wednesday.

Investors sued Healthways and its senior executives in 2008 after stock prices plummeted because the company was failing to meet expectations in a Medicare pilot program.

The company had...
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