Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC (“KSF”), announces that KSF has commenced an investigation into DaVita Inc. (NYSE: DVA).
On December 25, 2016, an article by the New York Times highlighted the relationship between the American Kidney Fund (“AKF”), a charity that helps patients pay for kidney dialysis, and its largest donors, including DaVita, suggesting that the AKF had denied charitable premium assistance (“CPA”) to patients of dialysis companies who did not donate to it. Then, on January 6, 2017, the Wall Street Journal reported that the Company had received subpoenas from federal prosecutors seeking “the production of information related to charitable premium assistance” in connection with its ties to the AKF.
On February 1, 2017, a securities class action lawsuit was filed against the Company alleging that it made false and/or misleading statements and/or failed to disclose its scheme to steer patients into unneeded insurance plans in order to maximize profits, using the AKF to facilitate the improper practices. Recently, the court presiding over the case denied the Company’s motion to dismiss, allowing the case to move forward.
KSF’s investigation is focusing on whether DaVita’s officers and/or directors breached their fiduciary duties to DaVita’s shareholders or otherwise violated state or federal laws.
If you have information that would assist KSF in its investigation, or have been a long-term holder of DaVita shares and would like to discuss your legal rights, you may, without obligation or cost to you, call toll-free at 1-877-515-1850 or email KSF Managing Partner Lewis Kahn (firstname.lastname@example.org), or click here.