Jefferies Reports DOJ Contacts CYH

According to Jefferies, Community Health Sys CYH was contacted by the DOJ on Friday regarding a False Claims Act lawsuit filed in 2009 and that should put additional pressure on CYH's stock today. Jefferies said that this comes just as THC's Board rejected CYH's latest all-cash $6 offer. “The next known catalyst in this developing saga will likely occur Thursday when CYH plans to address THC's allegations of billing improprieties on its Q1 earnings call -- a hugely risky move, in our opinion.” Community Health Sys closed on Thursday at $30.69.