In re Gentiva Securities Litigation
This case involves a consolidated securities fraud class action filed by the Los Angeles City Employees’ Retirement System (LACERS) against Gentiva Health Services, Inc., and several of its executives. LACERS alleged that Gentiva inflated its stock price by ordering medically unnecessary home health services and billing Medicare for them. After initial dismissals and amendments, the court addressed a motion for partial reconsideration. The court dismissed remaining claims against former CFO John R. Potapchuk and the corporate entity Gentiva but sustained Section 10(b) and 20(a) claims against former CEO Ronald A. Malone, based on a theory of motive and opportunity related to insider stock sales.