January 10, 2017 – Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) has been investigating DaVita Inc. ("DaVita” or the "Company") (NYSE: DVA) for potential violations of the federal securities laws. Investors who purchased DaVita common stock may be affected.
On January 6, 2017 after the market closed, multiple news sources reported that DaVita received a subpoena from federal prosecutors at the U.S. Department of Justice (“DOJ”) “seeking the production of information related to charitable premium assistance.” The New York Times reported that the DOJ requested information about the Company’s relationship to the American Kidney Fund, which provides assistance paying the insurance premiums of needy patients. According to the New York Times, the American Kidney Fund’s premium assistance program is under scrutiny concerning whether some dialysis companies have been inappropriately steering patients eligible for government insurance programs, like Medicaid, into more lucrative private insurance sold in the marketplaces created by the Affordable Care Act. Reportedly, the American Kidney Fund would cover the insurance premiums, which patients would not have been able to afford, and the private plans would then pay dialysis clinics much more than Medicaid for the same dialysis treatment.
On January 9, 2017, the first trading day following the news, the price of DaVita’s common stock (NYSE: DVA) declined by $2.41 per share, or 3.66%, to close at $63.38 per share on heavy trading volume.
If you purchased DaVita common stock and would like to discuss our investigation, please contact us by e-mailing
, or by calling 800-290-1952.
Attorneys: Laurence D. King, Jeffrey P. Campisi, Pamela A. Mayer