Gentiva Board Escapes Medicare Fraud Derivative Suit

Law360, New York (February 11, 2013, 3:09 PM EST) -- A Georgia federal judge on Monday dismissed a shareholder derivative suit accusing Gentiva Health Services Inc.'s board of directors of misleading investors about its allegedly improper Medicare reimbursement practices, ruling the plaintiffs had failed to ask the board to address their concerns before filing suit, as required by law.

According to U.S. District Judge Steve C. Jones, the plaintiffs had failed to prove that the board could be held liable for the company's purportedly wrongful Medicare reimbursement practices and therefore couldn't exercise their independent judgment to...
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