Universal Health Services Inc.
According to the lawsuit, throughout the Class Period, Defendants made 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) Universal Health would keep patients admitted until their insurance payments ran out in order to ensure the maximum payment for its services; (3) as a result, 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 at all relevant times. On December 7, 2016, Buzzfeed published an investigative story on Universal Health alleging, among other things, that Universal Health put profits ahead of people. On this news, shares of Universal Health fell $15.01 per share, or nearly 12%, from its previous closing price to close at $111.36 per share on December 7, 2016, damaging investors.
On April 17, 2017, the Court appointed Teamsters Local 456 Pension and Annuity Funds as Lead Plaintiff. On June 20, 2017, the action was transferred from the Central District of California to the Eastern District of Pennsylvania.
In accordance with the Court’s scheduling order, Lead Plaintiffs filed their Amended Complaint on September 29, 2017. Defendants moved to dismiss the Amended Complaint on December 6, 2017. Lead Plaintiffs opposed Defendants’ motion on February 7, 2018 and Defendants filed their reply in support on March 26, 2018.
Defendants’ motion to dismiss is now pending and fully briefed before the Court.