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 Middle District of Tennessee
on behalf of purchasers of the common stock of Community Health
Systems, Inc. ("CYH" or the "Company") (NYSE: CYH) between July 27,
2006 and April 11, 2011, inclusive (the "Class Period").
The Complaint charges CYH and certain of its officers and directors
violated federal securities laws. Specifically, the Complaint alleges:
(i) CYH's growth statistics, revenues, and profits were artificially
inflated as a result of CYH's improper admissions procedures designed
to overbill Medicare and other sources for patient admissions; (ii)
notwithstanding defendants' statements touting the financial and
strategically compelling advantages that would result from CYH's
acquisition of Tenet Healthcare, CYH's growth statistics, revenues,
and profits were artificially inflated, making the potential synergies
arising from the acquisition much less compelling than represented;
and (iii) as a result, defendants knew that the profit and revenue
numbers that they forecast to the market were unattainable.
On April 11, 2011, The Wall Street Journal, in an article entitled
"Tenet Claims Community Health Overbilled Medicare," informed
investors of the fraudulent practices occurring at CYH. As a result of
the disclosure, which ultimately revealed CYH's improper admissions
practices as well as CYH's true financial condition, CYH shares
dropped 35.7% to $25.89 on April 11, 2011.
If you are a member of the class, you may, no later than July 11,
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/communityhealthsystems/
(http://www.izardnobel.com/communityhealthsystems/) , or contact Izard
Nobel LLP toll-free: (800)797-5499, or by e-mail: firm@izardnobel.com
(mailto:firm@izardnobel.com) . For more information about class action
cases in general, please visit our website: www.izardnobel.com
(http://www.izardnobel.com/) .