6th Circuit Panel Rules That District Court Erred In Loss Causation Analysis

Mealey's (December 18, 2017, 2:47 PM EST) -- CINCINNATI — A federal district court erred in dismissing a shareholder class action against the operator of the country’s largest for-profit hospital system and certain of its executive officers for failure to plead loss causation because lead plaintiffs have shown that the filing of a complaint against the company alleging Medicare fraud and the defendants’ own disclosures that the company’s stock was down were sufficient corrective disclosures, a Sixth Circuit U.S. Court of Appeals panel ruled Dec. 13 in reversing and remanding (Norfolk County Retirement System v. Community Health Systems Inc., et al., No. 16-6059, 6th Cir., 2017 U.S. App. LEXIS 25136)....

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