Amedisys Stock Fraud

About Amedisys Stock Fraud

Amedisys, Inc. is a provider of home health services to the chronic, co-morbid, aging American population.  In April 2010, The Wall Street Journal reported that an analysis of Medicare payments to home health-care companies in recent years raised questions about whether some companies, including the sector’s largest company Amedisys Inc., are taking advantage of the Medicare reimbursement system. The article also names Gentiva Health Services Inc. (Nasdaq: GTIV), LHC Group, Inc. (Nasdaq: LHCG), and Almost Family Inc. (Nasdaq: AFAM). The article states that Amedisys and these other companies have deliberately boosted their numbers of home therapy visits to trigger higher Medicare reimbursements.

In May 2010, the U.S. Senate Finance Committee launched an investigation into the practices of Amedisys Inc., Gentiva Health Services Inc., LHC Group Inc., and Almost Family Inc.  Senate Finance Committee Chairman Max Baucus and Ranking Republican Member Charles Grassley stated that “Findings suggest that Home Health Agencies are basing the number of therapy visits they provide on how much Medicare will pay them instead of what is in the best interests of the patients." After this announcement, Amedisys stock (AMED) fell $4.74, or over 8 percent, in one day. Shares of Amedisys, Inc. (AMED) traded recently in July 2010 at $25.05 per share, down from its 52 week high of $64.28 per share.

On July 12, 2010 an Amedisys investor filed a lawsuit on behalf of current long term investors, including those AMED investors who purchased their AMED shares prior to February 2010 and continue to hold their AMED shares, against certain executives over alleged breached fiduciary duty. According to the complaint the plaintiff alleges that certain executives of Amedisys, Inc. breached their duty through a company practice of giving patients unnecessary care to collect Medicare payments.

Government Actions

• In May 2010, the Senate Finance Committee launched an investigation into the practices of Amedisys Inc., Gentiva Health Services Inc., LHC Group, Inc. and Almost Family Inc.
• The committee is investigating whether the companies deliberately boosted the number of home therapy visits to trigger higher Medicare reimbursements.

Cases, Settlements, & Verdicts

• On July 12, 2010 an Amedisys investor filed a lawsuit on behalf of current long term investors, including those AMED investors who purchased their AMED shares prior to February 2010 and continue to hold their AMED shares, against certain executives over alleged breached fiduciary duty.
• Other lawsuits have been filed on behalf of AMED shareholders that are seeking additional plaintiffs.

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