LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay & Murray LLP (“GPM”) announces that a class action lawsuit has been filed on behalf of investors who purchased Universal Health Services, Inc. (“Universal Health” or the “Company”) (NYSE: UHS) securities between February 26, 2015 and December 7, 2016, inclusive (the “Class Period”). Universal Health investors have until February 21, 2017 to file a lead plaintiff motion.
Investors suffering losses on their Universal Health investments are encouraged to contact Lesley Portnoy of GPM to discuss their legal rights in this class action at 310-201-9150 or by email to firstname.lastname@example.org.
On December 7, 2016, BuzzFeed issued a report revealing the results of its investigation into Universal Health. BuzzFeed’s investigation was based upon interviews with current and former Universal Health employees, including executives who had operational responsibilities in hospitals. The investigation also included interviews with patients and government investigators. According to the report, employees from Universal Health hospitals said they were “under pressure to fill beds by almost any method – which sometimes meant exaggerating people’s symptoms or twisting their words to make them seem suicidal – and to hold them until their insurance payments ran out.”
On this news, shares of Universal Health fell over 12% to close at just $111.36 per share on December 7, 2016.
According to the lawsuit, throughout the Class Period Defendants made false and/or misleading statements and/or failed to disclose that: (1) Universal Health admitted patients based on its own financial considerations and not upon the medical necessity of the patient; (2) Universal Health would keep patients admitted until their insurance payments ran out in order to ensure the maximum payment for its services; (3) as a result, Universal Health’s revenues from inpatient care relied on unsustainable practices; (4) in turn, Universal Health lacked effective internal control concerning its practices and policies of admitting patients; and (5) as a result, Universal Health’s public statements were materially false and misleading at all relevant times. On December 7, 2016, BuzzFeed published an investigative story on Universal Health alleging, among other things, that Universal Health put profits ahead of people. On this news, shares of Universal Health fell $15.01 per share, or nearly 12%, from its previous closing price to close at $111.36 per share on December 7, 2016, damaging investors.
If you purchased shares of Universal Health during the Class Period you may move the Court no later than February 21, 2017 to ask the Court to appoint you as lead plaintiff if you meet certain legal requirements. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to email@example.com, or visit our website at http://glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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