A proposed settlement resolving a civil lawsuit accusing home health and hospice company Amedisys, Inc. (NASDAQ:AMED) of insider trading has been preliminarily approved by the United States District Court for the Middle District of Louisiana.
Shareholders filed a federal lawsuit, Robert F. Bach, et al., v Amedisys, Inc., et all., against Amedisys alleging that some of the company’s executives engaged in insider trading, approved or made false statements to shareholders, and unjustly enriched themselves at the company’s expense.
Plaintiffs also claimed certain current and former directors and officers of the company “breached their fiduciary duties” by failing to implement or maintain adequate internal controls of the company’s operations and disclosure.
Although Amedisys and its executives deny the charges, it has agreed to pay up to $445,000 in attorneys’ fees and expenses in the proposed settlement, including an “incentive payment” of $5,000 to each plaintiff. Ten lawsuits were filed against the company before being consolidated.
As part of the settlement, Amedisys has also agreed to adopt and maintain certain corporate governance reforms in line with a stipulation that has been filed with the court.
There will be a hearing on Sept. 4, 2013 to determine whether the Court should issue an order of final approval of the settlement. If the settlement is approved, the lawsuit will be dismissed with prejudice.
Written by Alyssa Gerace
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