HCA settles shareholder lawsuits
NEWS IN BRIEF — Posted Sept. 3, 2007
The for-profit hospital chain HCA says it has paid $20 million to settle lawsuits that alleged that executives issued misleading statements about the company to boost its stock price.
The shareholder lawsuits accused Nashville, Tenn.-based HCA of talking up the company's prospects from January to July of 2005. During that time, shareholders said, HCA executives sold stock, then revealed in July 2005 that the company would experience worse-than-expected financial results.
The company did not admit wrongdoing as part of the settlement. Securities and Exchange Commission and U.S. Attorney General investigations into the matter resulted in no charges.
HCA was a public company until November 2006, when a group of private equity investors bought the company for $33 billion, including the assumption of $11.7 billion in debt.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2007/09/03/bibf0903.htm.