Universal Health Services, Inc. ("Universal Health") is an American company that provides hospital and healthcare services.
According to the law firm press release, the lawsuit alleges that throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (1) Universal Health admitted patients based on its own financial considerations and not upon the medical necessity of the patient; (2) Universal Health would keep patients admitted until their insurance payments ran out in order to ensure the maximum payment for its services; (3) as a result, Universal Health’s revenues from inpatient care relied on unsustainable practices; (4) in turn, Universal Health lacked effective internal control concerning its practices and policies of admitting patients; and (5) as a result, Universal Health’s public statements were materially false and misleading at all relevant times. On December 7, 2016, Buzzfeed published an investigative story on Universal Health alleging, among other things, that Universal Health put profits ahead of people. On this news, shares of Universal Health fell $15.01 per share, or nearly 12%, from its previous closing price to close at $111.36 per share on December 7, 2016, damaging investors.
This case was transferred to the Eastern District of Pennsylvania on June 20, 2017. Plaintiff filed an amended Complaint on September 29. Defendants filed a Motion to Dismiss the amended Complaint on December 6. On August 19, 2019, the Court issued an Order granting Defendants' Motion to Dismiss. Lead Plaintiffs filed a notice appealing the Court's Dismissal Order on May 29, 2020. This appeal was voluntarily dismissed on August 2, 2021.
On January 28, 2021, the Court of Appeals remanded the case to the District Court for consideration of a Settlement. On February 23, the parties entered into a Stipulation and Agreement of Settlement. On July 21, 2021, the Court granted final approval of the Settlement and entered Final Judgment.
The Court issued an Order approving distribution of the net Settlement fund on May 25, 2022.
