The law firm of Izard Nobel LLP, which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Eastern District of New York on behalf of purchasers of the common stock of Gentiva Health Services, Inc. ("Gentiva" or the "Company") (NASDAQ: GTIV) between July 31, 2008 through July 20, 2010 (the "Class Period").
The Complaint charges Gentiva and certain of its officers and directors with violations of federal securities laws. Specifically, it is alleged that defendants reported revenue and earnings growth that were, in large part, based on material increases in Medicare revenues and admissions in the Company's Home Health segment, but that defendants failed to disclose that Gentiva improperly increased the number of in-home therapy visits to patients for the purpose of triggering higher reimbursement rates under the Medicare PPS. During the Class Period, defendants sold approximately 261,828 Gentiva shares for proceeds of $6.3 million.
On May 13, 2010, the Wall Street Journal reported that the United States Senate Finance Committee launched an investigation into the practices of companies that provide in-home therapy visits reimbursed by Medicare, including Gentiva. On July 13, 2010, Gentiva disclosed that the Securities and Exchange Commission commenced a similar investigation. Finally, on July 20, 2010, Gentiva reduced its full-year revenue guidance. On July 21, 2010, Gentiva shares fell approximately 8%, to close at $19.96.
If you are a member of the class, you may, no later than January 7, 2011, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.
While Izard Nobel LLP has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, and your rights, visit: www.izardnobel.com/gentiva/ (http://www.izardnobel.com/gentiva/) , or contact Izard Nobel LLP toll-free: (800)797-5499, or by e-mail: firstname.lastname@example.org (mailto:email@example.com) . For more information about class action cases in general, please visit our website: www.izardnobel.com (http://www.izardnobel.com/) .