Overview Of The Settlement

City of Omaha Police and Fire Retirement System v. LHC Group, Inc., Case No. 6:12-cv-01609-JTT-CMH

This securities fraud class action was brought on behalf of those Persons who purchased the common stock of LHC Group, Inc. (“LHC” or the “Company”) between July 30, 2008 and October 26, 2011, inclusive, (the “Class Period”) against LHC and its Chief Executive Officer (the “Defendants”) for allegedly issuing false and misleading public statements during the Class Period. The Plaintiff also alleges that LHC’s Chief Executive Officer engaged in insider trading during the Class Period. According to the Plaintiff, Defendants’ allegedly reported dramatic growth in revenue derived from delivery of home-healthcare services and represented to investors that this was due to “organic growth” and acquisitions, but allegedly failed to disclose that much of LHC’s growth was generated by the abuse of the Medicare home-healthcare program. When the true state of affairs was revealed, Plaintiff alleged LHC’s stock price dropped, resulting in significant losses to those shareholders who had purchased LHC common stock while it was allegedly artificially inflated.

Lead Plaintiff and Plaintiff’s Counsel believe that the claims asserted in the class action lawsuit (the “Litigation”) have merit and that the evidence developed to date supports the claims. The Defendants deny each and all of the claims and contentions alleged in the Litigation. The Defendants have denied expressly and continue to deny all charges of wrongdoing or liability against them arising out of any of the conduct, statements, acts or omissions alleged, or that could have been alleged, in the Litigation.

The Settling Parties entered into settlement negotiations, and ultimately reached an agreement to settle this lawsuit on a class basis.

The Settlement creates a fund in the amount of $7,850,000 (the “Settlement Fund”). The Settlement Fund, plus interest earned from the date it is established, less costs, fees and expenses (the “Net Settlement Fund”), will be divided among all eligible Class Members whose claim for recovery has been allowed pursuant to the terms of the Stipulation and who send in valid claim forms (“Authorized Claimants”). Costs, fees, and expenses include Court-approved attorneys’ fees and expenses, the costs of notifying Class Members, including the costs of printing and mailing the Notice and the cost of publishing a newspaper notice, and the costs of claims administration. The Net Settlement Fund will be distributed according to the Plan of Allocation described in the Notice to Class Members who submitted valid and timely Proofs of Claim.

What Are My Options?

Please consult the Notice for more details on your options.

Settlement Hearing

Pursuant to the Settlement Hearing held on December 11, 2014, the Court approved the Settlement, the Plan of Allocation and the request for Lead Counsel fees.





Important Dates
DateDeadline
November 4, 2014

(Expired)

Objection Deadline
(filed and received)
November 11, 2014

(Expired)

Exclusion Deadline
(postmarked)
December 11, 2014
at 1:30pm

(Approved)

Settlement Hearing
January 9, 2015

(Expired)

Claim Form Deadline
(postmarked)

Your Options

  • To participate in the Settlement, submit a Claim Form