According to the Complaint, Community Health Systems, Inc. purports to be a leading operator of general acute care hospitals.

The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, the Complaint alleges Defendants failed to disclose to investors: (1) that the Company had understated its contractual allowances; (2) that the Company had understated its provision for bad debts; (3) that, as a result, the Company had overstated its net operating revenue; (4) that, as a result, the Company had understated its net loss; and (5) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

On November 20, 2019, the Court issued an Order appointing Co-Lead Plaintiffs and Counsel. Co-Lead Plaintiffs filed a consolidated amended Complaint on January 21, 2020. Defendants filed a Motion to Dismiss the consolidated amended Complaint on March 23. On August 17, 2022, the Court issued an Order denying Defendants' Motion to Dismiss.

On May 19, 2023, the parties entered into a Stipulation of Settlement. The Court granted preliminary approval of the Settlement on May 30. On October 20, the Court granted final approval of the Settlement, including an award of Attorneys’ Fees and Expenses, and entered Final Judgment.