Lowey Dannenberg Defeats Motion in Securities Class Action Against Community Health Systems, Inc.

by | Sep 26, 2018 | Homepage, News | 0 comments

On September 24, 2018, Lead Counsel Lowey Dannenberg, P.C. defeated defendants’ motion to dismiss in the District Court for the Middle District of Tennessee in the securities class action against Community Health Systems, Inc. (“CHS”).

In 2017, the Sixth Circuit Court of Appeals had already unanimously reversed the District Court’s original dismissal of the Amended Complaint and upheld an extended period for the fraud allegations.  On remand, defendants again moved to dismiss asserting that issues related to the extension of the fraud were undecided by the District Court and the Sixth Circuit.  In rejecting the defendants’ motion, the District Court found that Defendants’ arguments were “clearly barred by the mandate rule.”  Norfolk Cty. Retirement Sys. v. Cmty. Health Sys., Inc., No. 3:11-cv-00433, ECF No. 285, 1 (M.D. Tenn. Sept. 24, 2018).  A link to the decision is included below.

CHS – Order Denying Motion to Dismiss