Amedisys Inc. (Nasdaq: AMED), one of the nation’s largest home health care providers, agreed to pay investors $43.75 million to settle a class action lawsuit in an agreement reached on June 12, 2017, according to a filing with the Securities and Exchange Commission (SEC).
Amedisys investors filed a class action lawsuit after claiming company executives covered up a Medicare fraud scheme and defrauded investors. The lawsuit was filed in 2010, and Amedisys was ordered to pay $150 million in 2015 to resolve allegations that the company violated the False Claims Act, according to the Justice Department.
A judge ruled in August 2016 that the case was allowed to move forward, in part, with the claims of some investors that Amedisys defrauded them.
Amedisys, based in Baton Rouge, will record a $28.75 million charge to its net income in the second quarter of 2017, the company reported. Amedisys expects that approximately $15 million of the settlement amount will be paid by the company’s insurance carriers, the SEC filing states.
The settlement amount will be paid in the third quarter of this year.
Written by Amy Baxter