Health Management Associates, Inc.
Robbins Umeda LLP Announces an Investigation of Health Management Associates, Inc.
Robbins Umeda is investigating possible breaches of fiduciary duty and other violations of the law by certain officers and directors at Health Management Associates, Inc. (NYSE: HMA). 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’s investigation focuses on whether officials at Health Management breached their fiduciary duties to shareholders and maintained inadequate controls to the detriment of the company and investors. In particular, the firm is investigating allegations that the company’s officers and directors inflated the company’s earnings by improperly admitting elderly patients to increase the company’s hospital admissions rates and increasing Health Management’s Medicare billing for the costs associated with admittance.
On August 3, 2011, it was revealed that the U.S. Department of Health and Human Services had issued a subpoena requesting information about Health Management’s physician referrals, as well as ownership and management at the company’s whole-hospital physician joint ventures. Then, on January 9, 2012, an analyst from CRT Capital Group issued a report stating that Paul Meyer, Health Management’s former compliance director and thirty-year veteran of the FBI Miami Healthcare Fraud Unit, filed a lawsuit against the company for violation of Florida’s Private Sector Whistleblower’s Act. These actions have resulted in a decline in value of Health Management’s stock, and has subject Health Management to costly public and legal scrutiny that continues to harm the company and investors.
Robbins Umeda LLP highlights that Health Management shareholders have the option to file a 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.