Community Health Escapes Tenet Medicare Billing Suit

Law360, New York (March 21, 2012, 8:57 PM EDT) -- A Texas federal judge on Wednesday tossed Tenet Healthcare Corp.'s suit seeking to recover costs it incurred investigating proxy statements that revealed a Medicare billing scheme at Community Health Systems Inc. as part of its failed $4 billion takeover bid, finding Tenet lacked standing to sue under federal proxy rules.

U.S. District Judge Barbara M.G. Lynn rejected Tenet's claim that as a target in a proxy fight, it had standing to bring the suit for damages under the Securities and Exchange Act, ruling that the law...
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