Cases / Recent Settled Cases

Amedisys, Inc. Securities Litigation


Wolf Popper is Co-Lead Counsel in this litigation.  For further information about this case, please contact any of the following Wolf Popper attorneys: 

Robert C. Finkel, rfinkel@wolfpopper.com; Joshua W. Ruthizer, jruthizer@wolfpopper.com; Sean M. Zaroogian, szaroogian@wolfpopper.com; Elissa Hachmeister, Ehachmeister@wolfpopper.com.

Court Grants Final Approval to $43.75 Million Settlement

On December 20, 2017, the United States District Court for the Middle District of Louisiana granted final approval of the proposed settlement. Class Members are reminded that to participate in the settlement, Claim Forms must be postmarked on or before January 16, 2018.

Court Preliminarily Approves $43.75 Million Securities Fraud Settlement

On August 31, 2017, Chief Judge Brian A. Jackson of the United States District Court for the Middle District of Louisiana issued an Order preliminarily approving the $43.75 million securities fraud settlement in Bach v. Amedisys, Inc.  The parties reached the settlement after seven years of litigation.  The settlement is on behalf of a Class of all persons and entities who or which purchased the publicly traded common stock of Amedisys during the period from August 2, 2005 through September 30, 2011, inclusive and were damaged thereby.

To participate in the settlement, Claim Forms must be postmarked on or before January 16, 2018.  Class Members who wish to exclude themselves from the settlement or object to all or part of the settlement must do so on or before November 22, 2017.  Judge Jackson has scheduled a hearing to consider final approval of the settlement on December 13, 2017 at 11:00 a.m. at the United States District Court for the Middle District of Louisiana, United States Court House, Courtroom 2, 777 Florida Street, Baton Rouge, LA 70801.

Copies of the Preliminary Approval Order, Settlement Notice, Claim Form, and other important documents and information concerning the settlement, filing a claim, objecting or opting out of the settlement, and the final approval hearing can be accessed through the settlement website at www.amedisyssecuritieslitigation.com/.

$43.75 Million Settlement Reached in Amedisys Securities Fraud Litigation

On August 4, 2017, Lead Plaintiffs moved for preliminary approval of a settlement in the Bach v. Amedisys, Inc. securities fraud class action litigation pending in the United States District Court for the Middle District of Louisiana.  Subject to Court approval of the settlement, Amedisys and its insurance carriers will pay $43.75 million for the benefit of the Class in exchange for a dismissal with prejudice of the litigation.  The parties reached the settlement on behalf of a Class of all persons and entities who or which purchased the publicly traded common stock of Amedisys during the period from August 2, 2005 through September 30, 2011, inclusive and were damaged thereby.

The litigation concerned Lead Plaintiffs’ allegations that Amedisys hid a Medicare fraud scheme by which Amedisys improperly inflated Medicare reimbursements by pressuring and intimidating nurses and therapists to provide unnecessary treatment to trigger higher fees.  Lead Plaintiffs alleged that while committing this alleged Medicare fraud, Amedisys made several false and misleading statements that artificially inflated the price of the company’s stock.

This settlement was achieved after almost seven years of significant litigation, including successfully appealing the district court’s initial order of dismissal to the Fifth Circuit, and defeating defendants’ motion to dismiss Lead Plaintiffs' amended complaint.

The District Court has not yet scheduled a hearing to consider approval of the proposed settlement.

WOLF POPPER LLP ACHIEVES FIFTH CIRCUIT REVERSAL OF DISTRICT COURT DISMISSAL OF AMEDISYS COMPLAINT

Wolf Popper LLP is pleased to report that the Fifth Circuit Court of Appeals on October 2, 2014 resurrected a securities fraud class action accusing home health care provider Amedisys Inc. of defrauding investors by hiding a Medicare fraud scheme.  Case No. 13-30580.  Wolf Popper LLP and co-counsel represented the lead plaintiffs on the appeal. 

The three-judge panel criticized the district court for reviewing each alleged partial disclosure of Amedisys’ conduct alone then concluding that none of them were sufficient to constitute a corrective disclosure for a loss causation claim.

“This holding can best be understood by simply observing that the whole is greater than the sum of its parts,” the panel said in its decision. “The district court erred in imposing an overly rigid rule that government investigations can never constitute a corrective disclosure in the absence of a discovery of actual fraud.

Lead plaintiffs, the Public Employees’ Retirement System of Mississippi and the Puerto Rico Teachers Retirement System, accused Amedisys and several executives of improperly inflating Medicare reimbursements by pressuring and intimidating nurses and therapists to provide unnecessary treatment to trigger higher fees.

Lead plaintiffs alleged that while committing the alleged Medicare fraud, Amedisys made several false and misleading statements that artificially inflated the price of the company’s stock.

The case was remanded to and will continue in the district court.  M.D. La., Civil Action No. 10-00395.  The action is being prosecuted on behalf of all persons and entities who purchased or otherwise acquired the publicly traded securities of Amedisys from August 2, 2005 through and including September 28, 2010, and were damaged thereby.
October 6, 2014


Related Practice Area