Horizon/CMS Healthcare Corp. declined to comment on insider trading investigations by the Securities and Exchange Commission and the New York Stock Exchange.
The Albuquerque, N.M.-based long-term-care company, which has been the target of several shareholder suits in the past two months, disclosed the investigations in a recent SEC filing.
The inquiries question trading of Horizon stock by company executives and directors. Five individuals, including Neal Elliott, chairman and chief executive officer, sold 1.4 million shares worth $37 million in January and February. Shortly afterward, the company announced it anticipated disappointing third-quarter earnings, and the company's stock price fell significantly.
In addition to the trading investigations and shareholder suits, Horizon has been the target of a federal Medicare billing investigation and saw its planned merger with Pacific Rehabilitation and Sports Medicine fall through last month.