Amedisys, Inc. (NASDAQ:AMED) Files An 8-K Other EventsItem 8.01.
On June 12, 2017, Amedisys, Inc. (the “Company”) reached an agreement-in-principle to settle the putative securities class action lawsuit captioned Bach, et al. v. Amedisys, Inc., et al., Case No. 3:10-cv-00395, pending in the United States District Court for the Middle District of Louisiana since June 10, 2010. All parties to the action executed a binding term sheet that, subject to final documentation and court approval, provides in part for a settlement payment of $43.75 million and the dismissal with prejudice of the litigation. Approximately $15 million of the settlement amount will be paid by the Company’s insurance carriers.
In connection with the proposed settlement, the Company expects to record a pre-tax charge to net income of approximately $28.75 million in the second quarter of 2017. The Company will pay for the settlement with available resources and expects the settlement payment to occur during the third quarter of 2017.
The Company is settling the case to eliminate uncertainties, risk, distraction and expense associated with this protracted litigation, and neither the Company nor any individual defendant concedes or admits liability.
Special Caution Concerning Forward-Looking Statements
This Current Report on Form 8-K contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Words like “believes,” “belief,” “expects,” “will,” “plans,” “anticipates,” “intends,” “projects,” “estimates,” “may,” “might,” “would,” “should” and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based upon the Company’s current intent, beliefs and expectations but they are not guaranteed to occur and may not occur for various reasons, including some reasons that are beyond the Company’s control. For example, this Current Report on Form 8-K states that the Company has entered into a term sheet to settle the litigation. As noted above, the final settlement of the litigation requires that the Company and the plaintiffs’ representatives enter into a definitive settlement agreement, which must be approved by the court to the procedures for settlement of a civil class action. Also, the term sheet provides that the Company may withdraw from the settlement under certain circumstances. For these reasons, among others, the proposed settlement may not be completed. Results that differ from those stated or implied by the Company’s forward-looking statements in this Current Report on Form 8-K may be also caused by other reasons as described in the Company’s periodic reports filed with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, and the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2017, in sections of those reports titled “Special Caution Concerning Forward-Looking Statements” and “Risk Factors” and elsewhere in those reports. Investors are cautioned not to place undue reliance upon forward-looking statements in this Current Report on Form 8-K. Except as may be required by applicable law, the Company does not undertake any obligation to revise or update any forward-looking statements as a result of new information, future events or otherwise.
About Amedisys, Inc. (NASDAQ:AMED)
Amedisys, Inc. (Amedisys) is a provider of home health and hospice services. The Company offers home health services to the chronic, co-morbid, aging American population. The Company operates through three segments: home health, hospice and personal care. The Company’s home health segment delivers a range of services in the homes of individuals recovering from surgery, have a chronic disability or terminal illness or need assistance with completing important personal tasks. The Company’s hospice segment provides palliative care and comfort to terminally ill patients and their families. The Company’s personal care segment provides patients with assistance with the essential activities of daily living. The Company owns and operates approximately 330 Medicare-certified home healthcare centers, over 80 Medicare-certified hospice care centers and approximately nine personal-care care centers in over 30 states within the United States, the District of Columbia and Puerto Rico.
