Robbins Arroyo LLP: DaVita Inc. (DVA) Misled Shareholders According to a Class Action
Robbins Arroyo LLP announces that a class action complaint was filed against DaVita Inc. (NYSE: DVA) in the U.S. District Court for the District of Colorado. The complaint is brought on behalf of all purchasers of DaVita securities between August 5, 2015 and October 21, 2016, for alleged violations of the Securities Exchange Act of 1934 by DaVita’s officers and directors. DaVita provides kidney dialysis services for patients suffering from chronic kidney failure or end stage renal disease (“ESRD”).
DaVita Accused of Scheming to Earn Higher Reimbursement Rates from Government Programs
According to the complaint, DaVita purposefully steered 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, which resulted in illegally obtained revenues and profits. On August 18, 2016, the Centers for Medicare and Medicaid Services sent correspondence to DaVita for information regarding alleged steering of Medicare and Medicaid beneficiaries into other plans in order to earn higher reimbursement rates. On October 23, 2016, the St. Louis Post published an article that accused DaVita of steering clients to private insurers. 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. Then, on January 6, 2017, The Wall Street Journal reported that the U.S. Attorney’s Office for the District of Massachusetts had subpoenaed DaVita and the AKF seeking information relating to its 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, or you can complete the form below and we will contact you directly.