NEW YORK, Jan. 6, 2017 /PRNewswire/ -- Pomerantz LLP
announces that a class action lawsuit has been filed against
Universal Health Services, Inc. ("Universal Health" or the
"Company") (NYSE: UHS) and certain of its officers. The
class action, filed in United States District Court, Central
District of California, is on
behalf of a class consisting of all persons or entities who
purchased or otherwise acquired Universal Health securities between
February 26, 2015 and December 7, 2016, both dates inclusive (the
"Class Period"), seeking to recover compensable damages caused by
defendants' violations of the Securities Exchange Act of 1934.
If you are a shareholder who purchased Universal Health
securities during the Class Period, you have until February 21, 2017 to ask the Court to appoint you
as Lead Plaintiff for the class. A copy of the Complaint can
be obtained at www.pomerantzlaw.com. To discuss this action,
contact Robert S. Willoughby at
rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll
free, ext. 9980. Those who inquire by e-mail are encouraged to
include their mailing address, telephone number, and number of
shares purchased.
[Click here to join this class action]
Universal Health, through its subsidiaries, owns and operates
acute care hospitals, behavioral health centers, surgical
hospitals, ambulatory surgery centers, and radiation oncology
centers.
The Complaint alleges that throughout the Class Period,
Defendants made materially false and/or misleading statements, as
well as failed to disclose material adverse facts about the
Company's business, operations, and prospects. Specifically,
Defendants made false and/or misleading statements and/or 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 revenues from inpatient care relied on unsustainable
practices; (4) in turn, Universal Health lacked effective internal
control concerning its practices and policies of admitting
patients; and (5) as a result, Universal Health's public statements
were materially false and misleading at all relevant
times.
On December 7, 2016, BuzzFeed
published an article titled "Intake", detailing its year-long
investigation into Universal Health, which was "based on interviews
with 175 current and former UHS staff, including 18 executives who
ran UHS hospitals; more than 120 additional interviews with
patients, government investigators, and other experts; and a cache
of internal documents." The report stated that "[c]urrent and
former employees from at least 10 UHS hospitals in nine states said
they were under pressure to fill beds by almost any method – which
sometimes meant exaggerating people's symptoms or twisting their
words to make them seem suicidal – and to hold them until their
insurance payments ran out." The report further stated that "[t]wo
dozen current and former employees from 14 UHS facilities across
the country told BuzzFeed News that the rule was to keep patients
until their insurance ran out in order to get the maximum payment,"
and that "scores of employees from at least a dozen UHS 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 Rick Buckelew, a Universal Health employee who
ran Austin Lakes Hospital in Texas
until 2014, who stated that "[i]f an insurance company gave you so
many days, you were expected to keep the patient there that many
days" and that this "was a 'common practice' that was openly
discussed in regional conferences as well as phone calls with
hospital executives."
On this news, shares of Universal Health's share price fell
$15.01, or nearly 12% from its
previous closing price, to close at $111.36 on December 7,
2016, damaging investors.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los
Angeles, is acknowledged as one of the premier firms in the
areas of corporate, securities, and antitrust class litigation.
Founded by the late Abraham L.
Pomerantz, known as the dean of the class action bar, the
Pomerantz Firm pioneered the field of securities class actions.
Today, more than 80 years later, the Pomerantz Firm continues in
the tradition he established, fighting for the rights of the
victims of securities fraud, breaches of fiduciary duty, and
corporate misconduct. The Firm has recovered numerous
multimillion-dollar damages awards on behalf of class members. See
www.pomerantzlaw.com
CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
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SOURCE Pomerantz LLP