Medicare overbilling allegations spark Chemed stock plunge
- Aug 13 Capital Forum report alleged tens of millions in annual VITAS Medicare overbilling for continuous home care
- Scott+Scott launched fiduciary duty probe Aug 20 citing prior $75M false claims settlement
- CEO McNamara and EVP Lee sold shares mid-August (~$541/share); filings Aug 24 added pressure
- Stock gapped lower from $548.56 Aug 26 close, falling ~4.5% intraday near 52-week highs
- Follows strong Q2 earnings in July with raised guidance; move reflects renewed regulatory risk concerns
- VITAS hospice unit central to both current allegations and past DOJ settlement
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