May 01, 2012 (Shareholders Foundation) -- An investigation on behalf of current long-term investors in NYSE:UHS shares over potential breaches of fiduciary duties by certain officers and directors at Universal Health Services, Inc. in in connection with Medicaid programs was announced.
The investigation by a law firm focuses on possible shareholder claims based on potential breaches of fiduciary duties. Specifically, the investigation concerns whether certain directors and officers at Universal Health Services, Inc. (NYSE:UHS) breached their fiduciary duties in connection with certain Medicaid practices.
Universal Health Services, Inc. reported that its annual revenue rose from $5.02billion in 2008 to $7.5billion in 2011 and its Net income increased from $192.94million to $398.17million, respectively.
Universal Health Services, Inc. faces several legal challenges.
In 2008, Riveredge Hospital in Chicago, Illinois received a subpoena from the United States Department of Justice (DOJ) requesting certain information from the facility.
In 2009 a lawsuit was filed against Psychiatric Solutions, Inc, which Universal Health Services, Inc acquired. The lawsuit filed in the United States District Court for the Middle District of Tennessee against Psychiatric Solutions, Inc and the former directors alleges violations of federal securities laws.
In 2009, Sierra Vista Hospital in Sacramento, California learned of an investigation by the U.S. Department of Justice relating to Medicare services provided by the facility. Universal Health Services, Inc said it reached a tentative financial settlement with the DOJ which is subject to the negotiation of a definitive settlement agreement.
In November, 2009, the DOJ and the Virginia Attorney General intervened in a qui tam case that had been filed by former employees of Marion Youth Center under seal in 2007 against Universal Health Services, Inc. and others. Universal Health Services, Inc. said that during the third quarter of 2011, it reached an agreement in principle to settle all of the claims.
In September, 2010, Universal Health Services, Inc., along with many other companies in the healthcare industry, received a letter from the United States Department of Justice advising of a False Claim Act investigation being conducted in connection with the implantation of implantable cardioverter defibrillators from 2003 to the present at several of our acute care facilities.
In October, 2010, Friends Hospital in Philadelphia, Pennsylvania, received a subpoena from the DOJ requesting certain documents from the facility.
However, shares of Universal Health Services, Inc. (NYSE:UHS) dropped in 2011 from over $50 per share in July to as low as under $32 per share in October 2011.
Since then NYSE:UHS shares regained some value and closed on April 27, 2012 at $43.72, still significantly below its current 52weekHigh of $56.46 per share.