CHS Discloses Federal Subpoenas
Cash said the refiled suit seeks an award of costs and disbursements that Tenet purportedly incurred in analyzing alleged false and/or misleading disclosures in CHS' proxy solicitations and related statements. "The suit arises out of the now withdrawn offers to acquire the common stock of Tenet and notification of an intention to nominate directors at Tenet's annual meeting of stockholders," Cash said in the filing. "We believe the allegations are without merit and will vigorously defend this suit."
Finally, Cash said in the SEC filing that CHS is a defendant in at least two shareholder lawsuits filed in federal court in Nashville. "Although we have not yet been served in either case, we are aware that two lawsuits have been filed, both in U.S. District Court for the Middle District of Tennessee. Norfolk County Retirement System v. Community Health Systems, Inc., Wayne T. Smith, and W. Larry Cash was filed on May 9. De Zheng v. Community Health Systems, Inc., Wayne T. Smith, and W. Larry Cash was filed on May 12," Cash said in the SEC filing.
"Both suits seek class certification on behalf of purchasers of our common stock between July 27, 2006 and April 11, 2011 and allege that misleading statements resulted in artificially inflated prices for our common stock. We believe these suits are without merit and will vigorously defend them."
In a somewhat related filing with the SEC earlier on Wednesday, CHS said that shareholders had overwhelmingly reelected three board members this week, including Cash, despite the call by one investor group to toss them out.
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