Tenet Lobs Fraud Suit At Hostile Suitor CHS

Law360, New York (April 11, 2011, 3:22 PM EDT) -- Community Health Systems Inc.'s hostile bid for Tenet Healthcare Corp. got uglier Monday when the targeted hospital operator filed a securities fraud suit in Texas claiming its suitor routinely overbills Medicare to boost earnings.

Tenet shareholders are at risk of being harmed by "the improper and undisclosed practice," the Dallas-based plaintiff alleges in the U.S. District Court for the Northern District of Texas in a complaint that also names CHS CEO Wayne T. Smith and CFO W. Larry Cash as defendants.

The suit opens a new...
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