Former Louisiana AG initiates investigation into Tenet

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Former Louisiana Attorney General Charles Foti Jr., a partner at Kahn Swick & Foti, has begun an investigation into Dallas-based Tenet Healthcare.

On Oct. 3, Tenet agreed to pay approximately $514 million to resolve allegations the for-profit hospital operator paid illegal kickbacks for referrals. Following the announcement, a shareholder filed a putative class-action lawsuit against Tenet Friday, claiming the company violated the Securities Exchange Act by repeatedly failing to disclose the kickback scheme in Securities and Exchange Commission filings.

Two of Tenet's current executives are named as defendants in the class-action lawsuit: President and CEO Trevor Fetter and CFO Daniel Cancelmi. Tenet's former CFO Biggs C. Porter is also named as a defendant.

KSF's investigation is focused on whether Tenet's directors or officers breached their fiduciary duties to the company's shareholders or otherwise violated state or federal laws.

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