Hagens Berman LLP Investigates Community Health Systems, Inc., Advises Investors with Losses Exceeding $500,000 to Contact the Firm

Hagens Berman LLP, a nationwide, investor-rights law firm, is investigating Community Health Systems (NYSE: CYH) ("Community Health”) to determine if the company violated securities laws after a competitor, Tenet Healthcare (NYSE: THC) filed a lawsuit alleging that Community Health used improper admissions tactics.

Community Health Systems purports to be a leading operator of general, acute care hospitals. The company purports to own, operate or lease hospitals in 29 states.

The complaint, filed in U.S. District Court in Texas by Tenet Healthcare, alleges that Community Health employed a number of improper admissions tactics in order to exaggerate its growth. The complaint argues that physicians encouraged medically unnecessary admissions at the hospitals in order to increase payments from Medicare. A summary of the allegations can be found here.

Hagens Berman is investigating claims that Community Health’s stock price was artificially inflated due to these alleged improper admissions tactics.

HBSS Partner Reed R. Kathrein is leading the firm’s investigation from its San Francisco office.

"These allegations are serious and have already had a tremendous impact on the stock of both Tenet and Community Health,” said Mr. Kathrein. "Either Community Health will have to come clean or Tenet will have to account.”

According to media reports, on December 9, 2010, Community Health announced an offer to purchase Tenet Healthcare. Following the announcement, both Community Health and Tenet’s stock increased in value.

However, on April 11, 2011, after Tenet’s lawsuit against Community Health had been filed, media sources reported that Community Health’s stock had dropped 35 percent to $26.24 per share. At the same time, media sources reported that Tenet Healthcare’s stock had dropped to $6.51, a loss of nearly 14 percent.

Tenet Healthcare informed its employees of the suit in a memo, also released on April 11, 2011.

Community Health responded to the suit on the same day in a press release. In the release, Community Health argued that, "Tenet’s allegations are completely without merit.”

Investors who purchased Community Health or Tenet stock before April 11, 2011, and who incurred losses exceeding $500,000 are encouraged to speak with Hagens Berman Partner Reed R. Kathrein at 510-725-3000. Investors can also contact the Hagens Berman legal team via email at CommunityHealth@hbsslaw.com.

The firm is also interested to speak with witnesses who may have more information about these claims. To learn more, additional information is available at: www.hbsslaw.com/CommunityHealth.

About Investor Fraud Practice

Hagens Berman is a nationally recognized investor-rights law firm that provides highly acclaimed fraud recovery and asset protection services to individual and institutional investors who have been negatively affected by poor corporate governance, breach of fiduciary duties, misrepresentation of information, or a failure of good faith, fair dealing or loyalty. For an in-depth discussion of securities fraud, corporate governance and investor rights, please visit our Investor Fraud Website or our Meaningful Disclosure blog.

About Hagens Berman

Seattle-based Hagens Berman Sobol Shapiro LLP is one of the top class-action law firms in the nation, with offices in Boston, Chicago, Colorado Springs, Los Angeles, Minneapolis, New York, Phoenix, San Francisco and Washington, D.C. Founded in 1993, we represent plaintiffs in class actions and multi-state, large-scale litigation that seek to protect the rights of investors, consumers, workers and whistleblowers. More information about the firm is available at www.hbsslaw.com.