Gentiva Health Services, Inc.
Robbins Umeda LLP Announces the Filing of a Class Action Suit Against Gentiva Health Services, Inc.
Robbins Umeda LLP, a shareholder rights litigation firm, announces the filing of a federal securities class action by investors in the U.S. District Court for the Eastern District of New York on behalf of purchasers of Gentiva Health Services, Inc. (NASDAQ: GTIV) between July 31, 2008 and July 20, 2010.
The complaint alleges that beginning on July 31, 2008, certain officers and directors at Gentiva issued a series of positive statements to investors about the business condition, future prospects, and true performance of the company that were materially false and misleading, and that were designed to artificially inflate the value of the company. In particular, the complaint alleges that officials at Gentiva failed to disclose that it was improperly increasing the number of in-home therapy visits to patients in order to trigger higher Medicare reimbursement rates. As result, it is alleged that many of the positive financial statements made by directors and officers to investors contained figures that relied on these improper practices that deceived the government.
On July 13, 2010, Gentiva revealed to investors that it was being investigated by the U.S. Securities and Exchange Commission. Additionally, On July 20, 2010, the company further disclosed that it would be forced to lower its full-year guidance. Since these allegations have emerged, the value of the company’s stock has continued to decline. After trading at a high of $30.50 per share on April 14, 2010, shares of Gentiva closed on September 22, 2011 at just $5.30 per share.
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