NEW YORK, Dec. 27, 2016 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Universal Health Services, Inc. (“Universal Health” or the “Company”) (NYSE: UHS ) of the February 21, 2017 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.
The lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of all those who purchased Universal Health securities between February 26, 2015 and December 7, 2016 (the “Class Period”). The case, Heed v. Universal Health Services Inc et al , No. 2:16-cv-09499 was filed on December 23, 2016.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making 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) the Company would keep patients admitted until their insurance payments ran out in order to ensure the maximum payment for its services; (3) that, as a result of the foregoing, 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.
Specifically, on December 7, 2016, BuzzFeed published an article detailing its year-long investigation into Universal Health. The report stated, among other things, that current and former employees stated they were under pressure to fill beds by almost any method – which at times meant exaggerating people’s symptoms to make them appear suicidal – and to hold them until their insurance payments ran out.
On this news, Universal Health’s share price fell from $126.37 per share on December 6, 2016 to a closing price of $111.36 on December 7, 2016—a $15.01 or a 11.88% drop.
Request more information now by clicking here: www.faruqilaw.com/UHS . There is no cost or obligation to you.
Take Action
If you invested in Universal Health stock or options between February 26, 2015 and December 7, 2016 and would like to discuss your legal rights, visit www.faruqilaw.com/UHS . You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com . Faruqi & Faruqi, LLP also encourages anyone with information regarding Universal Health’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class that is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
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FARUQI & FARUQI, LLP 685 Third Avenue, 26th Floor New York, NY 10017 Attn: Richard Gonnello, Esq. rgonnello@faruqilaw.com Telephone: (877) 247-4292 or (212) 983-9330
