Tenet Healthcare To Pay $215 million Settlement
BY SHELLY ACHAIBAR, JANUARY 13, 2006
The US District court ruled that Tenet Healthcare, the second largest US hospital chain, has reached a consolidated settlement agreement of $215 million in cash to be distributed to its shareholders within the next 10 days. The company's net cost will amount to $140 million after insurance payout, to be recorded in the fourth quarter ended December 31, 2005.
In November 2002, the lawsuit was brought on by the people who bought Tenet securities, alleging the company and some of its former officers and directors made or were responsible for false statements and mismanagement of Medicare payments and other issues. Tenet hopes to restore investor confidence and conclude government investigations by paying back the money. Former Chairman and CEO, Jeffrey Barbakow, will contribute $1 million of his own money.
