I Hate Dialysis Message Board
Dialysis Discussion => Dialysis: News Articles => Topic started by: okarol on September 29, 2011, 11:08:30 PM
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SEPTEMBER 29, 2011, 5:48 PM ET
DaVita Drops After Downgrade
By Avi Salzman
Dialysis company DaVita (DVA) is facing escalating risks from legal claims and investigations, Citi analyst Gary Taylor wrote in a note today downgrading the company to Hold from Buy. Shares dropped 8.8% on Thursday.
“Two federal district court rulings on the EPO ‘overfill’ issue within the last 4 months (including one two weeks ago) have allowed the allegations to proceed as a potentially valid false claims theory. While we have been aware of the issue for years, we have generally discounted the risk until these recent court rulings.”
Taylor also notes that the U.S. Attorney in Denver has opened a criminal investigation into the company, which could affect the stock if charges are filed against top executives.
In addition, the company’s reimbursement rates could fall if the congressional Supercommittee debating deficit cuts can’t come to an agreement.
http://blogs.barrons.com/stockstowatchtoday/2011/09/29/davita-drops-after-downgrade/