Tenet Healthcare Settles Shareholder Lawsuits for $215 Million

By Danielle Briones

Published on January 13, 2006

The claims were filed in 2002 on behalf of investors who bought Tenet shares between January 11, 2000 and November 7, 2002.

The lawsuits allege that the company and some of its executives were accountable for false and misleading information regarding Medicare payments.

According to the terms of the settlement, the former CEO and COO will pay $1 million and $500,000, respectively.

Tenet Healthcare will pay about $140 million after insurance covers a portion of the settlement.

Tenet is currently involved in two separate lawsuits, including a federal government investigation into accusations that the company overcharged the Medicare program.

Tenet is also involved in a trial in San Diego regarding claims that one of Tenet's medical centers offered to pay relocation expenses for doctors bringing in patients under government healthcare programs.

Last year, Tenet agreed to a $30 million settlement to resolve lawsuits filed by uninsured patients who alleged the company overcharged them for services.

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