Tenet Healthcare Corp., the second-largest U.S. hospital chain, has announced the preliminary settlement of the securities class action pending against the company in the C.D. of Cal. The case was originally filed in 2002 and alleges that Tenet made false or misleading statements about Medicare payments and other issues.
The settlement is for $215 million, including $1.5 million in personal payments from two former officers. Tenet’s insurers will contribute $75 million. A related state court derivative case is also being resolved. Bloomberg has an article on the settlement.