The Complaint charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10-b(5). The action arises from damages incurred by the Class as a result of a scheme and common course of conduct by defendants which operated as a fraud and deceit on the Class during the Class Period.
Tenet operates general hospitals and related health care facilities throughout the United States. The complaint alleges that during the Class Period, defendants repeatedly represented that Tenet's financials were strong due largely to its state-of-the-art facilities and commitment to high-quality and cost-effective patient care. However, defendants knew that the Company's financial statements were artificially inflated by, among other things, wrongfully inducing patients to undergo unnecessary and invasive surgeries. As further alleged, due to defendants’ deceptive and illegal conduct, plaintiff and the other class members purchased their Tenet securities at artificially inflated prices and were damaged thereby.
This action seeks to recover damages on behalf of defrauded investors who purchased Tenet securities.

Update

On February 14, 2003, the Court appointed the State of New Jersey and its Division of Investment as lead plaintiff and the law firms of Schiffrin & Barroway and Lite DePalma Greenberg & Rivas as co-lead counsel and the law firm of Lim Ruger & Kim as liaison counsel for plaintiffs. On May 23, 2003, lead plaintiff filed an amended complaint, which defendants moved to dismiss.
On December 10, 2003, the Court granted defendants' motions to dismiss and directed plaintiffs to file an amended complaint. Plaintiffs filed their amended complaint on January 15, 2004 alleging securities fraud claims on behalf of investors who acquired their Tenet shares between January 11, 2000 and November 7, 2002. The amended complaint alleges claims under Sections 10(b) and 20(a) and 20(A) of the Securities Exchange Act of 1934, and Sections 11 and 15 of the Securities Act of 1933.