Subscribe to our newsletter to receive more information and regular updates, click here to subscribe

Home New Cases Nobilis Health Trustee Demands Over $50M in Alleged Damages

Nobilis Health Trustee Demands Over $50M in Alleged Damages

18
0

October 18, 2021, District of Delaware -Trustee Alfred T. Giuliano for the jointly administered Chapter 7 bankruptcy estates of Nobilis Health Corp, Northstar Healthcare Holdings, Inc., and Northstar Healthcare Acquisitions, L.L.C. (collectively, “Nobilis,” or “Debtors”) brings an action to recover more than $50 million towards the damages allegedly inflicted upon Nobilis—a now-defunct but previously publicly-traded healthcare firm—by the breaches of fiduciary duty and other wrongdoing of its former directors and officers (the “Defendants”). Before its collapse, Nobilis owned and operated surgical facilities and clinics. Through a complex corporate structure, the company owned and managed more than 30 specialty surgical hospitals, ambulatory surgical centers, and clinics across Texas and Arizona.

The Trustee alleges that the Nobilis’ books were materially misstated, and its financial condition and viability were misrepresented to lenders and others with the Defendants’ knowledge and under their direction and control. The Trustee further asserts that due to the acts and omissions of the Defendants, the Debtor carried uncollectable accounts receivable on its books, concealed collection problems, and incurred substantial debt it could never hope to repay. Further, the Trustee asserts that the Defendants implemented questionable billing practices in violation of industry standards and proper compliance procedures. Thus, the Trustee contends that the Defendants breached their fiduciary duties to Debtors and, when insolvent, their creditors, including duties of care, loyalty, and good faith.

Accordingly, the Trustee urges the Court to enter judgment in his favor and against Defendants for compensatory damages over $50 million; punitive damages in the amount to be determined by the jury along with the prejudgment interest, reasonable attorneys’ fees, and costs.

(18)

Jones & Associates

Course Registration Form

Enter your email and press subscribe

Enter your email and press subscribe