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Sept. 19, 2019, 12:34 p.m. EDT

Jim Chanos unveils short position in kidney-dialysis firm DaVita

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By Chris Matthews

DVA

Legendary short-seller Jim Chanos of Kynikos Associates on Thursday announced his fund has taken a short position in kidney-dialysis company DaVita Inc. /zigman2/quotes/204229673/composite DVA -3.17% . Chanos, speaking at the CNBC Institutional Investor Delivering Alpha conference, pointed to a recent lawsuit by Blue Cross Blue Shield of Florida Inc. and Health Options Inc. that claims DaVita has engaged in an insurance fraud scheme in an insurance fraud scheme in which it has conspired with the charity the American Kidney Fund to encourage its patients to move from Medicaid and Medicare to private insurance exchanges, with subsidies from the American Kidney Fund, so that it is able to reap higher payments for its services. Chanos said that a whilstleblower from the American Kidney Fund has come forward to claim that DaVita, a major donor to the charity, had directed it to provide funds to its customers. The announcement comes after Chanos had previously criticized the kidney dialysis industry more broadly. DaVita shares fell 2.3% during Thursday trade, and neither the company nor the American Kidney Fund immediately responded a request for comment.

/zigman2/quotes/204229673/composite
US : U.S.: NYSE
$ 70.30
-2.30 -3.17%
Volume: 1.90M
April 2, 2020 6:30p
P/E Ratio
13.11
Dividend Yield
N/A
Market Cap
$9.12 billion
Rev. per Employee
$146,781
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