Federman & Sherwood announces that a securities class action lawsuit has been filed against Chemed Corporation (NYSE: CHE)

Oklahoma City, OK (January 13, 2012) -- On January 12, 2012, a class action lawsuit was filed in the United States District Court for the Southern District of Ohio against Chemed Corporation (NYSE: CHE).  The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is February 15, 2010 through November 16, 2011.  More specifically, defendants engaged in a scheme to fraudulently bill Medicare for hospice services it provided to its patients who did not qualify for hospice care.  In addition, because the company enrolled ineligible patients in its hospice care program, revenues and earnings as reported were highly inflated as a direct result of defendants’ scheme to enroll and collect from Medicare on its ineligible patients.  In a Bloomberg article dated 11/16/2011, a former VITAS manager disclosed that Chemed was conspiring with various health care insurers to enroll some of its Medicare patients into their hospice program who were not dying.  The Bloomberg article also discussed an investigation by the U.S. Department of Justice into the purported fraudulent conduct.

Plaintiff seeks to recover damages on behalf of all Chemed Corporation shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above.  You may move the Court no later than Monday, March 12, 2012 to serve as a lead plaintiff for the entire Class.  However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.

To join this class action, click here to obtain an investor certification.  Once complete, please e-mail this form to kln@federmanlaw.com or fax to us at (405) 239-2112, attention Lynn Nunn.  Federman & Sherwood has over 20 years experience and expertise in litigation involving financial and securities fraud, and has been appointed as lead or co-lead counsel in multiple class and derivative actions across the country.