(Bloomberg) -- The U.S. Securities and Exchange
Commission last month granted Tenet Healthcare Corp. an unusual
break: The company will be given protection against shareholder
lawsuits even though it is being punished for fraud.
The SEC had accused the largest publicly traded hospital
chain of deceiving investors by failing to disclose a scheme to
boost earnings. Tenet, which neither admitted nor denied the
allegations, agreed to pay $10 million to settle. Yet the SEC
waived a rule that says companies engaging in fraud lose a
statutory shield that makes it harder for shareholders to sue if
forecasts turn out to be wrong.
Read more at Bloomberg Exclusive News
Commission last month granted Tenet Healthcare Corp. an unusual
break: The company will be given protection against shareholder
lawsuits even though it is being punished for fraud.
The SEC had accused the largest publicly traded hospital
chain of deceiving investors by failing to disclose a scheme to
boost earnings. Tenet, which neither admitted nor denied the
allegations, agreed to pay $10 million to settle. Yet the SEC
waived a rule that says companies engaging in fraud lose a
statutory shield that makes it harder for shareholders to sue if
forecasts turn out to be wrong.
Read more at Bloomberg Exclusive News
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