The U.S. Justice Department has suspended its more than 3-year-old civil investigation of Sun Healthcare Group, and HHS will not take any action against the nursing home operator, the company announced last week.
The probe into billing practices at Albuquerque-based Sun's rehabilitation therapy unit began in January 1995.
In a written statement, Sun Chairman and Chief Executive Officer Andrew Turner said the company is pleased with the agencies' decisions.
Sun disclosed it was under investigation in June 1995, sparking the resignations of two board members and four shareholder lawsuits. At issue was whether Sun should have disclosed the investigation in its May 1995 proxy statement.
The lawsuits were settled last year.
In July 1995 federal agents seized billing records at Sun's Seattle facilities. Two years later, the Justice Department said it would end its criminal investigation of the company but proceed with its civil probe.
Sun officials said they cooperated fully with the investigations. The company also noted that the government's decision to abandon the investigation doesn't mean the same issues won't be raised again.
The Justice Department did not return calls for comment by deadline.