class action

CHS Faces Class Action Alleging Securities Exchange Act Violations

A class action lawsuit has been filed against Tennessee-based hospital operator Community Health Systems Inc. (CHS) alleging the company made materially false statements and failed to disclose unfavorable business dealings to investors. The suit, filed by New York-based law firm Bragar Eagel & Squire PC, maintains that by negating or misrepresenting certain facts, CHS inflated its net operating revenue to increase stock valuation. The complaint, filed in U.S. District Court for the Middle District of Tennessee, can be viewed here.

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U.S. Supreme Court Issues Decision Regarding Application of CAFA

The U.S. Supreme Court on Tuesday handed down a 5-4 decision in the case of Home Depot v. Jackson regarding application of the Class Action Fairness Act (CAFA) and an alleged scam by the company in cooperation with Citibank, and Carolina Water Systems Inc. (CWSI) over questionable credit lines used to push water purification systems. One customer who purchased the system, George W. Jackson, was sued by Citibank for unpaid debt. Jackson then filed a counterclaim against Citibank asserting class-action consumer-protection claims, further naming Home Depot and CWSI as respondents. Citibank then tried to remove the case to federal court citing the CAFA, when the lower courts and the Fourth Circuit held that a party named in a counterclaim is not a “defendant” that is entitled to remove the case under the law. Justice Thomas joined with Justices Ginsburg, Breyer, Sotomayor and Kagan to form the majority in affirming the Fourth Circuit judgment.

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Trump Asks Judge to Keep Plaintiff on 'Trump University' Suit

Donald Trump has asked U.S. District Judge Gonzalo Curiel not to allow a plaintiff to remove herself from a class action lawsuit filed by former Trump University customers. Trump also hinted that he may ask Curiel to remove himself because Trump claims the judge has been “hostile” towards him. The suit was filed in April 2010 and claimed Trump University, which charged thousands of dollars to help customers learn how to achieve in the real estate world, was a scam. The plaintiff claims she has suffered health problems and financial troubles since the case began. Read more from the ABA Journal.

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