A punitive class action lawsuit has been filed against Tenet Healthcare Corp. by a shareholder who claims the hospital system violated the Exchange Act with misleading statements in the run-up to the $513 million settlement mentioned above.
Shareholder Nicholas Pennington says in the suit that Tenet violated the Exchange Act by making misleading statements in its SEC filings and that its failure to disclose the details of the scam misled investors who bought its stock, which later dropped after the revelations of the investigation and the settlement agreement. The complaint alleges:
Had plaintiff and the other members of the class been aware that the market price of Tenet securities had been artificially and falsely inflated by the company’s and the individual defendants’ misleading statements and by the material adverse information which the company’s and the individual defendants did not disclose, they would not have purchased Tenet securities at the artificially inflated prices that they did, or at all.
The case also names CEO Trevor Fetter, former Chief Financial Officer Biggs C. Porter, who resigned in 2012, and current CFO Daniel J. Cancelmi, saying made misleading statements and had a duty to provide truthful information. The proposed class include anyone who acquired Tenet securities between Feb. 28, 2012, through this Oct. 3.
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