Bach, et al. v. Amedisys, Inc., et al.

Plaintiffs filed suit against Amedisys and others, alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, 15 U.S.C. 78u-4(b)(4). Plaintiffs claimed that Amedisys defrauded investors by concealing a Medicare fraud scheme. The district court granted a motion to dismiss for failure to state a claim under Rule 12(b)(6) and dismissed the suit with prejudice. Plaintiffs filed a motion for reconsideration but the district court denied the motion. The court concluded that the motion to dismiss should be denied as to the element of loss causation. The district court's application of the "actual fraud" standard to the partial disclosures at issue, and when viewed against the stark results of Amedisys's second quarter of 2010 earnings report, requires reversal and vacating the prior dismissal. View "Bach, et al. v. Amedisys, Inc., et al." on Justia Law