The Amended Complaint brings forth claims for violations of the Securities Exchange Act of 1934 against DaVita Inc. (“DaVita” or the “Company”), and certain of its senior executives. The Amended Complaint alleges, among other things, that throughout the Class Period, Defendants made materially false and misleading statements and omissions regarding DaVita’s alleged scheme to “steer” all patients eligible for and/or enrolled in Medicare and/or Medicaid away from government insurance and into high-cost commercial insurance plans in order for DaVita to obtain dialysis reimbursement rates that were up to ten times higher than the rates that government plans paid for the same dialysis treatments. The Amended Complaint alleges that this scheme was facilitated though DaVita’s relationship with the American Kidney Fund (“AKF”)—a 501(c)(3) charitable organization to which DaVita purportedly “donated” over $100 million in annual charitable contributions, which the AKF would in turn use to pay the commercial insurance premiums for the patients Plaintiffs allege Defendants had steered. The Amended Complaint alleges that DaVita’s stock price was artificially inflated during the Class Period as a result of Defendants’ alleged materially false and misleading statements and omissions, and that DaVita’s stock price declined substantially when the truth regarding Defendants’ alleged misrepresentations was revealed.
On November 6, 2017, the Court appointed Peace Officers’ Annuity and Benefit Fund of Georgia and Jacksonville Police and Fire Pension Fund as Lead Plaintiffs, and Saxena White P.A. as Lead Counsel. On January 12, 2018, Lead Plaintiffs filed their Amended Complaint.
On March 27, 2018, Defendants filed their motion to dismiss the Amended Complaint. Lead Plaintiffs filed their opposition on June 6, 2018, and on July 20, 2018, Defendants filed their reply. On August 1, 2018, Lead Plaintiffs filed a motion for leave to file a sur-reply, which was subsequently granted by the Court.
On March 28, 2019, the Court entered an Order denying Defendants’ motion to dismiss in its entirety. Defendants filed their Answer to the Amended Complaint on May 28, 2019. On June 26, 2019, the Court entered a Scheduling Order setting pre-trial deadlines.
On January 31, 2020, Lead Plaintiffs filed their Motion for Class Certification, Appointment of Class Representatives and Appointment of Class and Liaison Counsel. On February 24, 2020, Defendants filed a Motion for Partial Reconsideration of the Court’s Order Denying the Motion to Dismiss and amended this motion on February 27, 2020. Lead Plaintiffs’ Opposition to Defendants’ Amended Motion for Partial Reconsideration was filed on April 10, 2020. Defendants filed their Reply in support of their Amended Motion for Partial Reconsideration on May 1, 2020. On June 29, 2020, Defendants filed their opposition to Plaintiffs’ motion for class certification.
On September 18, 2020, Lead Plaintiffs filed an Unopposed Motion for Preliminary Approval of Class Action Settlement. On October 27, 2020, the Court granted preliminary approval of the $135 million settlement. On February 23, 2021, Lead Plaintiffs filed a Motion for Final Approval of Class Action Settlement and Plan of Allocation and a Motion for an Award of Attorneys’ Fees and Reimbursement of Expenses. Then on March 23, 2021, Lead Plaintiffs filed the Reply in Further Support of Final Approval of Settlement and Request for Fee Award and Reimbursement of Expenses, announcing the overwhelming support from the Settlement Class. A settlement fairness hearing commenced on March 30, 2021.