Robbins Umeda LLP Announces an Investigation of DaVita, Inc.
Robbins Umeda LLP is investigating possible breaches of fiduciary duty and other violations of the law by certain officers and directors of DaVita, Inc. (NYSE: DVA). Concerned shareholders who would like more information about their rights and potential remedies can complete the form below and we will contact you directly. You can also contact attorney Gregory E. Del Gaizo at (800) 350-6003.
Robbins Umeda LLP is investigating whether officers and directors of DaVita breached their fiduciary duties and caused damage to the company and its shareholders by engaging in a scheme to fraudulently waste, overuse, and overprescribe certain dialysis-related medications to receive the maximum reimbursements through Medicare and Medicaid and similar government-funded programs.
Two qui tam actions detailing this fraudulent activity have been filed against the company. These actions allege that the dialysis-related medications were billed at 6% above the average sale price, and as such, DaVita received per-dose reimbursements higher than the actual cost they paid for the medications. Further, DaVita’s manipulation in the administration of these medications caused waste and enabled the company to receive improper reimbursements from the federal government and inflated revenues.
On July 3, 2012, the company announced the settlement of one of the qui tam actions, in connection with which the company will pay $55 million plus attorneys’ fees. Additionally, federal authorities in Colorado have subpoenaed certain current and former directors and executive officers in connection with a grand jury investigation into DaVita’s billing practices and alleged illegal kickbacks provided to referring physicians. Multiple other investigations of the company’s business practices are pending in the U.S. Attorney’s Office for the Eastern District of Missouri, the U.S. Attorney’s Office for the Eastern District of New York, and the Office of Inspector General of the Department of Health and Human Services in Dallas, Texas.
Robbins Umeda LLP highlights that DaVita shareholders have the option to file a shareholder derivative action to hold those officers and directors accountable for damaging the company. Remedies commonly sought in derivative actions include corporate governance reforms designed to prevent future misconduct, removal of officers or directors whose misconduct injured the corporation, and monetary payments in the form of damages and disgorgement of ill-gotten gains.
Robbins Umeda LLP is a nationally recognized leader in securities litigation and 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.