Employee Shareholders File Suit Against Tenet
From Bloomberg News
Tenet Healthcare Corp. is being sued by employees holding company shares, saying they were misled by false financial statements. The Santa Barbara-based hospital company and its officers knew or should have known the firm was artificially inflating revenue, claims the suit on behalf of employees participating in a stock purchase plan.
The Justice Department has accused Tenet of filing phony Medicare claims. The stock, which fell 13 cents to $17.40 on the NYSE on Thursday, is down 67% since October.
Gary Alan Hamner, a former Tenet employee, filed the suit Wednesday in Los Angeles Superior Court, seeking class-action status. A Tenet spokesman declined to comment.
