This developing securities fraud class action alleges that medical device manufacturer NuVasive (ticker symbol: NUVA) and its senior executives knew about the company’s practice of falsely billing Medicare and Medicaid and allowed the illegal scheme to continue.
NuVasive, a company that specializes in manufacturing products and devices used during spinal fusion surgeries, released its quarterly report to shareholders on July 30, 2013. In this report, the company informed investors that NuVasive had received a federal administrative subpoena from the Office of the Inspector General of the U.S. Department of Health and Human Services in connection with an investigation that the company submitted false or improper bills to Medicare and Medicaid.
After the company released the quarterly report informing investors of the federal investigation, shares of NuVasive’s common stock dropped by 12 percent. Financial experts say the company’s shareholders suffered a $150 million loss that day, a hit that may be attributed to news of allegations of improper Medicare billing practices.
Morgan & Morgan’s securities fraud lawyers would like to hear from NuVasive shareholders who have suffered losses due to the company’s allegedly fraudulent Medicare and Medicaid billing practices. To learn more about how you may be able to participate in this securities fraud lawsuit, please fill out our no-cost, no-risk case review form.
The government’s subpoena raises several issues with regard to the conduct of the company’s senior management. For example, if NuVasive’s executives had prior knowledge that the company’s billing practices could be the target of a government investigation, these executives may have had an obligation to disclose this fact to the investment community. Furthermore, NuVasive may not have had proper internal control procedures in place to ensure the company complied with Medicare and Medicaid billing procedures.
NuVasive Investors May Be Eligible to Participate In Securities Fraud Lawsuit
This securities fraud lawsuit is in its early stages and Morgan & Morgan’s securities attorneys would like to hear from shareholders who have suffered financial losses due to the allegedly false Medicare and Medicaid billing activities of NuVasive’s senior executives.
Individuals who may qualify to join this developing class action include shareholders who purchased NuVasive stock between October 8, 2008 and July 30, 2013 and suffered a loss. In addition, any current or former NuVasive employee who owns company stock through a company-sponsored 401(k) or employee stock purchase plan, as well as investors who purchased options contracts involving NuVasive shares, may also be able to take part in any potential recovery.
To learn more about this developing securities fraud class action and your potential legal rights, please fill out our free, no-obligation case evaluation form to get an evaluation from a class action lawyer.