NEW YORK--(BUSINESS WIRE)--Bragar Eagel & Squire, P.C. reminds investors that a class action lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of all persons or entities who acquired Universal Health Services Inc. (NYSE:UHS) securities between February 26, 2015 and December 7, 2016 (the “Class Period”). Investors have until February 21, 2017 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Universal Health owns and operates acute care hospitals, behavioral health centers, surgical hospitals, ambulatory surgery centers, and radiation oncology centers.
The Complaint alleges that 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; and (4) in turn, Universal Health lacked effective internal controls concerning its practices and policies of admitting patients. As a result, Universal Health’s public statements were materially false and misleading throughout the Class Period.
On December 7, 2016, BuzzFeed published the results of a yearlong investigation “based on interviews with 175 current and former UHS staff, including 18 executives who ran UHS hospitals; more than 120 additional interviews with patients, government investigators, and other experts; and a cache of internal documents.” According to the report, “[c]urrent and former employees from at least 10 UHS hospitals in nine states 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.” Following this news, Universal Health shares declined $15.01 per share, or over 11.8%, on December 7, 2016 to close at $111.36.
If you purchased or otherwise acquired Universal Health securities during the Class Period and suffered a loss or continue to hold shares purchased prior to the Class Period, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact J. Brandon Walker, Esq. by email at firstname.lastname@example.org, or telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
Bragar Eagel & Squire, P.C. is a New York-based law firm concentrating in commercial and securities litigation. For additional information concerning the Universal Health lawsuit, please go to www.bespc.com/uhs. For additional information about Bragar Eagel & Squire, P.C., please go to www.bespc.com.