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Columbia hit with suits
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August 19, 1997: 8:49 a.m. ET
Whistleblowers, pension funds to take health care firm to court
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NEW YORK (CNNfn) - Columbia/HCA Healthcare Corp. is facing a slew of lawsuits in addition to the federal investigations being launched against it.
More than a dozen people associated with Columbia/HCA have filed suit against the health care firm, alleging that the company has defrauded the government with misleading Medicare charges, The New York Times reported Tuesday.
The suits were filed under federal whistleblower laws, which allow people to come forward with information in exchange for rewards.
The suits are important because they will allow officials to see how work was carried out at Columbia/HCA before the federal investigation was made known. Investigators allege the company improperly billed the government for Medicare services.
In another legal development, two pension funds have sued Columbia/HCA and its directors, saying their mismanagement of the company has resulted in dramatic stock losses to their funds. Indeed, Columbia/HCA stock (COL) closed at 33-5/8 Monday, far below its 52-week high of 44-7/8 per share.
The two pension funds filing suits are the Florida State Board of Administration and the Louisiana Teachers Retirement System, The Wall Street Journal reported Tuesday. Last week, New York State Comptroller H. Carl McCall entered a similar suit against Columbia/HCA.
The plaintiffs are seeking damages and an overhaul of the board of directors and the corporate governance procedures.
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Columbia/HCA
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