WEST HARTFORD, CT -- (Marketwire) -- 05/13/11 -- The law firm of Izard Nobel LLP, which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Middle District of Tennessee on behalf of purchasers of the common stock of Community Health Systems, Inc. ("CYH" or the "Company") (NYSE: CYH) between July 27, 2006 and April 11, 2011, inclusive (the "Class Period").
The Complaint charges CYH and certain of its officers and directors violated federal securities laws. Specifically, the Complaint alleges: (i) CYH's growth statistics, revenues, and profits were artificially inflated as a result of CYH's improper admissions procedures designed to overbill Medicare and other sources for patient admissions; (ii) notwithstanding defendants' statements touting the financial and strategically compelling advantages that would result from CYH's acquisition of Tenet Healthcare, CYH's growth statistics, revenues, and profits were artificially inflated, making the potential synergies arising from the acquisition much less compelling than represented; and (iii) as a result, defendants knew that the profit and revenue numbers that they forecast to the market were unattainable.
On April 11, 2011, The Wall Street Journal, in an article entitled "Tenet Claims Community Health Overbilled Medicare," informed investors of the fraudulent practices occurring at CYH. As a result of the disclosure, which ultimately revealed CYH's improper admissions practices as well as CYH's true financial condition, CYH shares dropped 35.7% to $25.89 on April 11, 2011.
If you are a member of the class, you may, no later than July 11, 2011, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.
While Izard Nobel LLP has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, and your rights, visit: www.izardnobel.com/communityhealthsystems/, or contact Izard Nobel LLP toll-free: (800)797-5499, or by e-mail: firstname.lastname@example.org. For more information about class action cases in general, please visit our website: www.izardnobel.com.