Investor sues Community Health Systems for fraud

(Photo Supplied/Lutheran Health Network)

NASHVILLE, Tenn. (WOWO): A class-action lawsuit has been filed against the parent company of Fort Wayne’s Lutheran Health Network.

Tennessee-based Community Health Systems and three of its executives are accused of securities fraud by a shareholder. The Journal Gazette reports that Caleb Padilla is suing because he feels the company misled investors over the company’s financial situation.

It’s been widely reported that CHS is hemorrhaging money, reporting losses of almost $5-billion over the past three years alone. Those financial troubles led to a failed attempted takeover and buyout by a group of local doctors in 2017.

Padilla says the company filed inaccurate financial disclosures and lied in news releases sent to investors.

LEAVE A REPLY

Please enter your comment!
Please enter your name here