The Shareholders Foundation announces that a deadline is coming up on August 25, 2015 in the settlement reached in the securities class action lawsuit filed on behalf of investors who purchased shares of Gentiva Health Services Inc (NASDAQ:GTIV) between July 31, 2008 and October 4, 2011.
Investors who purchased a significant amount of shares of Gentiva Health Services Inc (NASDAQ:GTIV) between July 31, 2008 and October 4, 2011, have certain options and should contact the Shareholders Foundation by email at mail@shareholdersfoundation.com or call +1(858) 779 – 1554.
The settlement proof of claim form or detailed settlement notice for the settlement in the Gentiva Health Services Inc (NASDAQ:GTIV) Investor Securities Class Action Lawsuit can be downloaded at: http://shareholdersfoundation.com/case/gentiva-health-services-inc-nasdaq-gtiv-investors-securities-class-action-lawsuit-11022010
In order to submit a claim an investor has to submit the claim proof to the class action claim administrator in a timely manner. The deadline to submit the proof with the class administrator is August 25, 2015. The class action administrator for this case is Epiq Systems Inc.
The lawsuit was originally filed in the U.S. District Court for the Eastern District of New York against Gentiva Health Services Inc over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between July 31, 2008 and July 20, 2010. According to the complaint the plaintiff alleges that Gentiva Health Services Inc and certain of its officers violated the Securities Exchange Act of 1934. The plaintiff claims that Gentiva Health Services Inc reported between July 31, 2008 and July 20, 2010, growth in revenue and earnings that were, in large part, based on material increases in Medicare revenues and admissions in Gentiva Health Services Home Health segment, but that defendants failed to disclose that Gentiva Health Services Inc improperly increased the number of in-home therapy visits to patients for the purpose of triggering higher reimbursement rates under the Medicare PPS.
According to the complaint in 2008 and 2009, 52% and 68% of Gentiva Health Services Inc’s reported net revenues came from Medicare.
In April 2010 the Wall Street Journal published an article entitled “Home Care Yields Medicare Bounty.” The Wall Street Journal reported that an analysis by the Wall Street Journal of Medicare payments to home health-care companies in recent years raised questions about whether some companies, including Gentiva Health Services Inc, are taking advantage of the Medicare reimbursement system. The article stated that “[t]he results show that the number of in-home therapy visits tracks Medicare financial incentives.” According to the WSJ article, the percentage of Gentiva Health Services Inc patients receiving 10 visits dropped by 27% from 2007 to 2008, when the 10 visit reimbursement bonus was eliminated from Medicare in January 2008
Then in May 2010, the Wall Street Journal reported that the U.S. Senate Finance Committee launched an investigation into the practices of companies that provide in-home therapy visits reimbursed by Medicare, including Gentiva Health Services Inc and, that “[t]he committee is investigating whether the companies deliberately boosted the number of home therapy visits to trigger higher Medicare reimbursements.” On May 14, 2010, the price of Gentiva Health Services Inc shares declined from a closing price on May 13, 2010 of $29.75 per share to close at $27.55 per share, a decline of $2.20 per share or approximately 7%. On May 26, 2010 the Senate Finance Committee requested supplemental information relating to Gentiva Health Services Inc’s compliance program, policies and procedures and billing manuals.
In July 2010 Gentiva Health Services Inc disclosed that it was “informed by the Securities and Exchange Commission that the Commission has commenced an investigation relating to Gentiva Health Services Inc’s participation in the Medicare Home Health Prospective Payment System (HH PPS). The Company believes the investigation is similar to the Commission’s ongoing investigations and the Senate Finance Committee inquiry previously disclosed by Gentiva Health Services Inc and other home health companies. The Commission requested that the company preserve all documents from January 1, 2000 to the present relating to its participation.”
On July 13, 2010, the price of Gentiva Health Services Inc shares (NASDAQ:GTIV) closed at $22.30 per share. On July 14, 2010, during intra-day trading, the price of Gentiva Health Services Inc shares declined to $19.91 per share, a decline of 11%, before closing at $21.99 per share. Gentiva Health Services Inc also disclosed that on July 16, 2010, it received a subpoena from the SEC requesting certain documents in connection with its investigation.
Later in July 2010 Gentiva Health Services Inc disclosed its financial results for the fiscal quarter ended July 4, 2010. Among other things, Gentiva Health Services Inc said that “in light of recent softness in home health episodic volumes and the anticipated seasonality in third quarter volumes as experienced by the Company historically, Gentiva Health Services Inc has reduced its full-year revenue guidance to a range of $1.20 billion to $1.23 billion from its prior guidance of between $1.23 billion to $1.26 billion.” On July 21, 2010, Gentiva Health Services Inc shares declined from a close on July 20, 2010 of $21.60 per share, to close at $19.96 per share, a decline of $1.64 per share.
In the beginning of August 2011 Gentiva Health Services Inc (NASDAQ:GTIV) shares dropped from over $20 per share July to $6.10 on August 10, 2010 after Gentiva Health Services Inc reported its second quarter 2011 results and lowered its FY 2011 guidance.
Those who purchased shares of Gentiva Health Services Inc (NASDAQ:GTIV) have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North – Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com