IN RE COLUMBIA-HCA HEALTHCARE CORP SECURITIES LITIGATION


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Keywords & Phrases

CaseNo: CHCAL180722, CourtName: CLASS ACTION CASES, State: TN Tennessee, UniqueCaseRef: LCD>CHCAL180722, Pltfs, Columbia, Mcwhorter, Tlc, Act, Motion, Medicare, Hospitals, Healthcare, Morse, Government, Entry, Defts, Reports, Complaint, United States, Physicians, District, Class Action, Patients, Common Stock, Health Care, Class Period, Judge Thomas, Stock, Certificate, Facilities, Macnaughton, Civil, Laws, W/attached Exhibits, Memorandum, Practice, Cost Reports, Columbia/hca Health, Nashville, Tri-county Pension, Eod, Scott, Allegations, Middle District, Higgins Granting Motion, Management Order , ContentID: 120249580

Case Documents

COMPLAINT
[ see first page and extracted highlights below ] ItemID: 122162

43 pages
TXT

2000-09-18

DOCKET
[ see first page and extracted highlights below ] ItemID: 122164

39 pages
TXT

1997-11-24

CONSOLIDATED AMENDED COMPLAINT
[ see first page and extracted highlights below ] ItemID: 122163

40 pages
PDF

Total Documents: 3 documents , 122 pages

Price: $ 29.95

IVESLCD01 KGI0001

1 . COMPLAINT

EXTRACTED KEY WORDS

COLUMBIA
HEALTHCARE
MEDICARE
PLAINTIFFS
HOSPITALS
ACT
PHYSICIANS
PATIENTS
UNITED STATES
COMMON STOCK
CIVIL
LAWS
PRACTICE
MEMBERS
SCOTT
GOVERNMENT
HEALTH CARE
FLAAC
FACILITIES
SIDNEY MORSE
REGULATIONS
HEALTHCARE OPERATIONS
SUBSIDIARIES
FRAUDULENT
MACNAUGHTON
COLUMBIA/HCA HEALTHCARE CORPORATION
CLASS PERIOD
CHIEF EXECUTIVE OFFICER
REFER PATIENTS


                    IN THE UNITED STATES DISTRICT COURT
                        MIDDLE DISTRICT OF TENNESSEE
                             NASHVILLE DIVISION



   SIDNEY MORSE, on behalf of COLUMBIA/HCA
   HEALTHCARE CORPORATION

                         Plaintiff

   v.

   R. CLAYTON McWHORTER; THOMAS F.
   FRIST, JR., M.D.; MAGDALENA AVERHOFF,
   M.D.; CHARLES J. KANE; T. MICHAEL LONG;
   DONALD S. MacNAUGHTON; RICHARD L.
   SCOTT; ROBERT D. WALTER; WILLIAM T.
   YOUNG; JOHN W. LANDRUM; RODMAN W.
   MOORHEAD, III; CARL E. REICHARDT;
   and FRANK S. ROYAL, M.D.

                         Defendants

   and

   COLUMBIA/HCA HEALTHCARE CORPORATION

                   Nominal Defendant


   LISA LIOTTA and SIDNEY MORSE,
   on behalf of themselves and
   all others similarly situated

                       Plaintiffs

   v.

   R. CLAYTON McWHORTER; THOMAS F.
   FRIST, JR., M.D.; RICHARD L. SCOTT;
   and COLUMBIA/HCA HEALTHCARE CORPORATION

                       Defendants

   )
   )

SNIPPETS:

SIDNEY MORSE, on behalf of COLUMBIA/HCA

Defendants

COLUMBIA/HCA HEALTHCARE CORPORATION

R. CLAYTON McWHORTER; THOMAS F. FRIST, JR., M.D.; RICHARD L. SCOTT;

and COLUMBIA/HCA HEALTHCARE CORPORATION

Plaintiffs, as and for their class action and derivative complaint, by their attorneys, filings and materials, as follows:

23 of the Federal Rules of Civil Procedure, on behalf of themselves and all other persons or

These counts are based on violations of Section 10 and Rule 10b-5 promulgated by the SEC

Plaintiffs bring this action to recover damages suffered and to be suffered by the Company

As part of the fraudulent scheme, Columbia has through its public statements, repeatedly

In fact, it has been caused to repeatedly violate numerous Medicare regulations, which it has -called "consultation fees," to such physicians to make such investments; paying so-called below.

As a result of defendants' fraudulent business conduct, the Company has grown from a small

The Company has billed the United States Government billions of dollars for Medicare

Plaintiff Lisa Liotta purchased 60 shares of Columbia common stock on February 26, 1997 at

Columbia is a hospital management company, which has been in operation through various

Frist was Chairman of the Board, President, and Chief Executive Officer of HCA from September

Donald S. MacNaughton has been a director of the Company since 1995.

He is Chairman of the Board and Chief Executive Officer of Cardinal Health, Inc., a

One of the means by which defendants have been defrauding Medicare is through the practice of

Offering physicians who are in a position to make referrals to Columbia hospitals and

Such investment opportunities were not offered to members of the general public, or generally

Each week there are up to eight persons in the FLAAC.

Plaintiffs bring Counts I and II of this action as class counts pursuant to Rule 23 of the

2 . DOCKET

EXTRACTED KEY WORDS

MCWHORTER
TLC
MOTION
MORSE
ENTRY
DEFTS
COMPLAINT
DISTRICT
COUNSEL
JUDGE THOMAS
CERTIFICATE
W/ATTACHED EXHIBITS
MEMORANDUM
COLUMBIA/HCA HEALTH
TRI-COUNTY PENSION
EOD
ATTORNEY
HIGGINS GRANTING MOTION
MANAGEMENT ORDER
RESPONSE
MAGDALENA AVERHOFF
REICHARDT
GRANTING MOTION
CLAYTON MCWHORTER
LEAD PLTF
MACNAUGHTON
OPPOSITION
CLASS ACTION
AMENDED COMPLAINT

Case docket was last updated on: 09/18/00.


Docket as of September 18, 2000 7:53 am               Page 1

Proceedings include all events.                                   TERMED
3:97cv370 Morse, et al v. McWhorter, et al
                                                                         50BA
                                                            TERMED 50BA
                       U.S. District Court
            MIDDLE DISTRICT OF TENNESSEE (Nashville)

               CIVIL DOCKET FOR CASE #: 97-CV-370

Morse, et al v. McWhorter, et al                            Filed: 04/08/97
Assigned to: Judge Thomas A. Higgins         Jury demand: Both
Demand: $0,000                               Nature of Suit:  850
Lead Docket: None                            Jurisdiction: Federal Question
Dkt# in other court: None

Cause: 15:78m(a) Securities Exchange Act


SIDNEY MORSE, on behalf of        Paul Kent Bramlett
Columbia/HCA Healthcare           (COR LD)
Corporation and on behalf         Bramlett Law Offices
himself and all others            P O Box 150734
similarly situated                2828 Stouffer Tower
     pltf                         Nashville, TN 37215-0734
                                  (615) 248-2828

                                  George Edward Barrett
                                  (COR LD NTC)
                                  Barrett, Johnston & Parsley
                                  217 Second Avenue, N
                                  Nashville, TN 37201
                                  (615) 244-2202

                                  Stuart D. Wechsler
                                  (COR LD)
                                  Robert I. Harwood
                                  (COR)
                                  Samuel K. Rosen
                                  (COR)
                                  Daniella Quitt
                                  (COR LD)
                                  Wechsler, Harwood, Halebian &
                                  Feffer, L.L.P.

SNIPPETS:

3:97cv370 Morse, et al v. McWhorter, et al

MIDDLE DISTRICT OF TENNESSEE

LABORERS TRI-COUNTY PENSION George Edward Barrett

4/8/97 1 COMPLAINT w/ att'd verification of Sidney Morse

Securities Laws (Entry date 04/10/97)

w/ Local Rule 1 (no certificate of good standing)

4/11/97 -- LETTER from Clerk to pltf's counsel, Nadeem Faruqi of NY,

out of the Southern District of New York (tlc)

5/12/97 9 ATTORNEY APPEARANCE for defts by Steven Allen Riley &

5/12/97 10 MOTION for attorney Alexander R. Sussman to appear pro hac

vice for defts; w/attached certificate of GS as exhibit A;

5/14/97 13 ORDER by Judge Thomas A. Higgins;

20 days after service of the amended complaint;

(EOD 5/15/97)

6/6/97 18 MEMORANDUM by unknown party,

lead pltf and for approval of lead pltf's choice of counsel

6/30/97 27 OPPOSITION by Laborer's Tri-County to Columbia Pltfs' Group

6/30/97 28 MEMORANDUM by deft Columbia/HCA Health in opposition to

w/attached exhibits A - E

proposed case management order to be

Lead Counsel for the pltfs in the Class Action and is

Reichardt

1/8/98 82 ATTORNEY APPEARANCE for defts: R. Clayton McWhorter,

S. MacNaughton, Carl E. Reichardt & Columbia/HCA Health by

Magdalena Averhoff, T. Michael Long, Donald S. MacNaughton,

2/25/98 112 RESPONSE by pltfs to defts' motions for leave to file reply

3 . CONSOLIDATED AMENDED COMPLAINT

EXTRACTED KEY WORDS

COLUMBIA
PLAINTIFFS
REPORTS
GOVERNMENT
ACT
HOSPITALS
CLASS ACTION
STOCK
MEDICARE
MEMBERS
CLASS PERIOD
COST REPORTS
MCWHORTER
NASHVILLE
HEALTH CARE
ALLEGATIONS
MIDDLE DISTRICT
STATES DISTRICT COURT
UNITED STATES
REIMBURSEMENT
COMMON STOCK
MATERIAL FACTS
EXECUTIVE OFFICER
FACILITIES
VANDEWATER
COLUMBIA SECURITIES
HOME HEALTH CARE
MARKET PRICE
MISLEADING

                                                                                      I
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 UNITED  STATES  DISTRICT  COURT
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                                                                 Nm'  2  -:  ?ss7
                                                                                                   
E  DISTRICT  OF  TENNESSEE

   NASHVILLE  DIVISION

                                                     



                                                      SIDNEY  MORSE,  et al.,
                                                              I-
                             )
                                                         ..?-
                             >

                             >           No.  3-97-0370
                                                                                                   
ntiffs,                      >

                             >           Judge  Higgins
                                                                                                   
                             >



                             >
                                                      R. CLAYTON  McWHORTER,  et al.,
                             >           Jury  Demand

                             >
                                                                                                   
ndants.                      >
                                                     
                                                   /.

SNIPPETS:

IN THE UNITED STATES DISTRICT COURT 2 4

Plaintiffs, individually and on behalf of all others similarly situated, allege upon personal

public filings, company press releases, news stories, research analysts' reports and other

SUMMARY OF THE ALLEGATIONS

Plaintiffs bring this action as a class action on behalf of a class

prvasive and on-going course of unlawful conduct by the defendants designed to materially

Wnited States Government and various state governments.

Columbia's public statements have consistently created the false and misleading

its hospitals, home health care and other related facilities at inflated, or "upcoded," rates;

improperly shifting payment of its own corporate overhead to Medicare

to increase unlawfully its government reimbursement.