SAN DIEGO & DENVER--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that it is investigating whether DaVita Inc.'s (NYSE: DVA) officers and directors violated the Securities and Exchange Act of 1934. DaVita provides kidney dialysis services for patients suffering from chronic kidney failure or end stage renal disease ("ESRD").
View this information on the law firm's Shareholder Rights Blog:
DaVita Accused of Ripping Off Government Programs
The firm's investigation concerns actions taken by DaVita fiduciaries between August 5, 2015 and October 21, 2016, which may have harmed the value of DaVita stock. DaVita has been accused of purposefully steering patients into unnecessary private insurance plans in order to maximize profits by using the American Kidney Fund ("AKF") as a vehicle to facilitate its scheme. As a result, DaVita's revenues and profits may have been illegally obtained, indicating a lack of effective internal controls over financial reporting. On August 18, 2016, the Centers for Medicare and Medicaid Services requested information from DaVita regarding alleged steering of Medicare and Medicaid beneficiaries into other plans in order for the company to earn higher reimbursement rates. Then, on October 23, 2016, the St. Louis Post published an article that accused DaVita of steering clients to private insurance providers. On this news, DaVita's stock price fell $2.86 per share, or 4.69%, to close at $58.10 per share on October 24, 2016. On January 6, 2017, DaVita announced that it had received a subpoena from the U.S. Attorney's Office for the District of Massachusetts seeking information relating to charitable premium assistance.
DaVita Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
Attorney Advertising. Past results do not guarantee a similar outcome.