CHS Faces Investor Suit Over Alleged Medicare Fraud

Law360, New York (May 13, 2011, 6:24 PM EDT) -- A Community Health Systems Inc. shareholder hit the company with a putative class action in Tennessee on Thursday, saying CHS and two executives misled investors by orchestrating a scheme to increase Medicare reimbursements by lowering hospital admissions standards for patients.

During the alleged scheme, Wayne T. Smith, the company's CEO, and CHS Chief Financial Officer W. Larry Cash gave falsely misleading statements through press releases, analyst teleconferences and documents filed with the U.S. Securities and Exchange Commission that falsely inflated the company's stock price, according to...
To view the full article, register now.