Community Health Systems Faces Class Fraud Suit With ‘Red Flags’

A securities class action will proceed against Community Health Systems Inc. based on allegations that the company materially misstated its financial condition in documents and statements provided to investors, a federal court in Tennessee said.

CHS is one of the largest publicly traded hospital companies in the US. It owns or leases 155 hospitals in 21 states, with about 26,222 hospital beds. Its patients include Medicare and Medicaid beneficiaries, insured individuals, and self-pay clients, the US District Court for the Middle District of Tennessee said.

The company reported a loss of $1.7 billion for 2016, resulting in a steep decline ...