Morgan Stanley Comments On Community Health Systems' OIG Subpoena

According to Morgan Stanley, Community Health Systems (NYSE: CYH) disclosed OIG Subpoena on Friday.

Morgan Stanley reported that Community Health Systems it expects shares to be weak again (could well take another 10+% hit) on Monday, after CYH disclosed after the market closed Friday 4/15/11 that it already received an OIG subpoena back on 4/8/11. “We had expected the regulatory scrutiny to ramp, but investors may be frustrated by the fact that the subpoena was not disclosed with CYH's release on 4/12 which said "Tenet's allegations are completely without merit and we intend to vigorously defend ourselves against these unfounded and irresponsible claims".”

Community Health Systems closed yesterday at $31.90.