Robbins Arroyo LLP: Universal Health Services, Inc. (UHS) Misled Shareholders According to a Recently Filed Lawsuit
December 28 2016 - 7:29PM
Business Wire
Shareholder rights law firm Robbins Arroyo LLP announces that a
lawsuit was filed against Universal Health Services, Inc. (NYSE:
UHS) in the U.S. District Court for the Central District of
California. The complaint is brought on behalf of all purchasers of
Universal Health securities between February 26, 2015 and December
7, 2016, for alleged violations of the Securities Exchange Act of
1934 by Universal Health's officers and directors. Universal
Health, through its subsidiaries, owns and operates acute care
hospitals, behavioral health centers, surgical hospitals,
ambulatory surgery centers, and radiation oncology centers.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/universal-health-services-inc
Universal Health Accused of Implementing Ineffective Internal
Controls
According to the complaint, Universal Health submitted a series
of filings with the U.S. Securities and Exchange Commission
attesting to the accuracy of financial reporting, the disclosure of
any material changes to the company's internal controls over
financial reporting, and the disclosure of all fraud. The company's
filings detailed the various commitments the company abides by in
order to achieve "long-term results" for investors, including:
service excellence, ethical and fair treatment, and continuous
improvement in measurable ways. In addition, Universal Health
stated that it has "a comprehensive ethics and compliance program
that is designed to meet or exceed applicable federal guidelines
and industry standards" and that it believes it complies with
applicable government regulations.
However, the complaint alleges that Universal Health officials
failed to disclose that: (1) Universal Health admitted patients
based on its own financial considerations and not upon the medical
necessity of the patient; (2) Universal Health would keep patients
admitted until their insurance payments ran out in order to ensure
the maximum payment for its services; (3) as a result, Universal
Health's revenue from inpatient care relied on unsustainable
practices; and (4) in turn, Universal Health lacked effective
internal control concerning its practices and policies of admitting
patients. On December 7, 2016, BuzzFeed published a report stating
that current and former Universal Health employees were under
pressure to fill beds by almost any method. The report specified,
"scores of employees from at least a dozen [Universal Health]
hospitals said those facilities tried to keep beds filled even at
the expense of the safety of their staff or the rights of the
patients they were locking up." The report also quoted a former
employee who stated that this was a "common practice" that was
openly discussed in regional conferences and phone calls with
hospital executives. On this news, Universal Health stock fell
$15.01 per share, or nearly 12%, to close at $111.36 per share on
December 7, 2016.
Universal Health Shareholders Have Legal Options
Concerned shareholders who would like more information about
their rights and potential remedies can contact attorney Darnell R.
Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the
shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in
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.
Attorney Advertising. Past results do not guarantee a similar
outcome.
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version on businesswire.com: http://www.businesswire.com/news/home/20161228005460/en/
Robbins Arroyo LLPDarnell R. Donahue(619) 525-3990 or Toll Free
(800) 350-6003DDonahue@robbinsarroyo.comwww.robbinsarroyo.com
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