Chemed Investors Sue Over Alleged Hospice Scam

Law360, New York (January 13, 2012, 4:36 PM EST) -- Shareholders of Cincinnati-based hospice service Chemed Corp. hit the company with a class action on Thursday, accusing it of running a scam to defraud federal health care programs that, when revealed, caused investors significant economic losses.

The Greater Pennsylvania Carpenters Pension Fund claims Chemed, in its quarterly financial filings and press releases as well as in investor conference calls, led shareholders to believe the company was experiencing positive growth in its business. According to the complaint, Chemed enrolled and kept certain patients in hospice even though...
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