A physician group in Michigan filed suit against Horizon/CMS, alleging the long-term-care company breached a contract.
Horizon/CMS said it will vigorously defend against allegations by General Medicine, which filed suit in U.S. District Court in Detroit.
The group had been under contract "to provide nurse practitioners in certain of our facilities," said Michael Seeliger, vice president of investor and corporate relations at Horizon/CMS. The company "had concerns with the services that they provided" in two Michigan facilities, Seeliger said.
Separately, the company has announced the filing of 17 shareholder suits during the past few months. In the suits, shareholders allege, among other things, that directors of the company misused inside information when they sold 1.4 million shares worth $37 million in January and February, shortly before several company announcements that caused the price of Horizon/CMS stock to drop in March.
Horizon/CMS, based in Albuquerque, N.M., said last month it is the subject of two insider trading probes. The company has denied any wrongdoing.