Judge Drops 2 Gentiva Execs From Securities Class Action

Law360, New York (September 19, 2013, 6:32 PM EDT) -- A New York federal judge on Thursday dropped two Gentiva Health Services Inc. executives from a proposed securities fraud class action accusing the home health care company of inflating its stock price by overbilling Medicare, but allowed the case to proceed against two other executives and Gentiva itself.

U.S. District Judge Arthur D. Spatt found that the Los Angeles City Employees’ Retirement System, the lead plaintiff, hasn’t alleged that Chief Financial Officer Eric R. Slusser sold any Gentiva stock during the period at issue and noted...
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