A federal judge approved a settlement that will pay some shareholders of the former Quorum Health Group, Brentwood, Tenn., a total of about $7.6 million, or 21 cents per share. The total settlement amount was $11.75 million, according to court records, but lawyers' costs and fees reached about $4.1 million and were subtracted from the settlement amount. A lawyer familiar with the case said the settlement was accepted as outlined in court documents. The class-action lawsuit was filed in U.S. District Court in Nashville, on behalf of shareholders who purchased Quorum stock from Oct. 25, 1995, to Sept. 28, 1998 -- on the latter date, Quorum announced that the U.S. Justice Department had intervened in a whistleblower lawsuit alleging Medicare cost reporting fraud by the company. In October 2000, Quorum settled that case and another by paying the government $95.5 million; the settlement paved the way for Quorum to be sold to Triad Hospitals, Dallas. HCA, Nashville, recently paid Triad $4.5 million to cover a share of the government settlement attributed to the late 1980s, when HCA owned the Quorum hospitals. -- by Vince Galloro
Court OKs settlement of Quorum shareholder suit
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