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Johnson Fistel Investigates Encompass Health Following Reports of Poor Patient Outcomes at Rehab Facilities

1. Johnson Fistel is investigating claims against Encompass Health for securities law violations. 2. EHC accounted for 34 out of 41 rehab facilities rated poorly by Medicare. 3. New York Times reported EHC's high readmission rates impacting investor confidence. 4. Following the report, EHC's stock price dropped over 10%. 5. Investors may seek recovery for losses due to alleged company misrepresentation.

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FAQ

Why Very Bearish?

The stock drop indicates severe investor concern over legal and operational issues, reminiscent of previous declines during litigation disclosures.

How important is it?

Ongoing legal issues and negative media coverage can significantly impact EHC’s market perception and investor sentiment.

Why Short Term?

Immediate investigations and stock decline will likely have quick impacts; potential legal outcomes could unfold rapidly.

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SAN DIEGO, Sept. 08, 2025 (GLOBE NEWSWIRE) -- Johnson Fistel, PLLP is investigating potential claims for investors of Encompass Health Corporation (NYSE: EHC) over possible violations of federal securities laws. Investors may be eligible to recover losses from alleged misrepresentations or omissions by the company and its executives. Background:On July 15, 2025, The New York Times published an article titled "Even Grave Errors at Rehab Hospitals Go Unpenalized and Undisclosed," reporting that Encompass Health "accounts for about one in seven rehab facilities nationally, but owned 34 of the 41 inpatient rehab facilities that Medicare rated as having statistically significantly worse rates of potentially preventable readmissions for discharged patients" and that Encompass Health "owned 28 of the 87 rehab facilities – 65 of which were for-profit – that had worse rates of potentially preventable readmissions to general hospitals during patient stays." Following this news, the price of Encompass Health stock fell by more than 10%. About Johnson Fistel, PLLP:Johnson Fistel, PLLP is a nationally recognized shareholder rights law firm with offices in California, New York, Georgia, Idaho, and Colorado. The firm represents individual and institutional investors in securities class actions and shareholder derivative lawsuits, including foreign investors on U.S. exchanges. In 2024, it was ranked among the Top 10 Plaintiff Law Firms by ISS Securities Class Action Services, recovering approximately $90.7 million for clients where it served as lead or co-lead counsel. For more information, visit www.johnsonfistel.com. Attorney advertising.Past results do not guarantee future outcomes.Services may be performed by attorneys in any of our offices.Johnson Fistel, PLLP has paid for the dissemination of this promotional communication, and Frank J. Johnson is the attorney responsible for its content. Contact:Johnson Fistel, PLLP501 W. Broadway, Suite 800, San Diego, CA 92101James Baker, Investor Relations or Frank J. Johnson, Esq.(619) 814-4471jimb@johnsonfistel.com or fjohnson@johnsonfistel.com

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