Tenet Healthcare Corp., Santa Barbara, Calif., said it will appeal a $253 million judgment awarded by the 2nd California District Court of Appeal to a founder of Tenet's predecessor company, National Medical Enterprises (NME), in a breach-of-contract case. Tenet said it would ask the appeals court to reconsider its ruling, and, if that request fails, would appeal to the California Supreme Court. NME co-founder John Bedrosian sued NME for breach of contract after the hospital company fired him as executive vice president in September 1993. The termination followed a federal investigation of NME's psychiatric unit that led to a then-record $379 million fraud settlement. At issue is the amount of damages; previous court rulings have established his contract was breached. The most recent ruling regarded whether damages should include gains in Tenet's stock up to its October 2002 high and whether Bedrosian is entitled to more shares of stock because of Tenet's 3-for-2 stock split in June 2002. In both cases, the appeals court sided with Bedrosian. Read the decision. -- by Vince Galloro
Tenet to fight $253 million award to NME founder
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