The U.S. Justice Department announced late Thursday that it is suing Chemed Corp. (CHE) and its hospice subsidiaries. The government is accusing the company of being involved in the submission of false claims for crisis care services that proved to be unnecessary, were never actually provided or failed to meet Medicare requirements.
Chemed gapped open dramatically lower Friday, but was range-bound for the majority of the session. The stock finished with a loss of 13.79 at $68.00 on the highest volume of the year. Chemed sank to a 4-month low and fell below both its 50 and 200-day moving averages.
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