Chemed Corp. (NYSE: CHE) Former Employee Investigation Over Possible Breaches Of Fiduciary Duty
San Diego, March 13, 2012 (Shareholders Foundation) -- An investigation on behalf of former and current employees of Chemed Corp., who are or were participants or beneficiaries of any Chemed Corp. employee company stock option plan and/or purchased and/or currently hold Chemed Corp. (NYSE: CHE) stock concerning potential violations of the Employee Retirement Income Security Act (“ERISA”) was initiated.
According to the investigation by a law firm under ERISA employees (former and current) of Chemed Corp. may also be eligible to file a complaint for putting stock options at risk if they can prove their employer violated its fiduciary duty to them.
Chemed Corp. currently faces a lawsuit by an investor over alleged securities laws violations. An investor in Chemed Corp. (NYSE: CHE) shares recently filed a lawsuit in the U.S. District Court for the Southern District of Ohio against Chemed Corporation. The plaintiff alleges that Chemed Corporation and certain of its officers and directors issued between February 15, 2010 and November 16, 2011 materially false and misleading statements regarding the Company's business and prospects.
On November 16, 2011, a media outlet reported that Vitas Healthcare Corp., a unit of Chemed Corp., has been accused by a whistleblower in lawsuit of a medicare HMO conspiracy. Additionally, the Department of Justice (“DOJ”) reportedly is seeking internal Vitas Healthcare Corp documents in an investigation focused on alleged abuses of Federal health-insurance programs. According to the article “the government has told the court it suspects Vitas of ‘an extensive scheme’ to defraud Medicare and Medicaid of ‘hundreds of millions of dollars’ by falsifying records and hospice certifications.”