Tenet Healthcare Corp., Dallas, will seek to recover all of the costs it incurred in fending off a hostile takeover bid made by Community Health Systems, according to an amended complaint in its securities lawsuit against Community in U.S. District Court in Dallas.
Tenet seeks to recoup costs of defending against CHS takeover
Tenet's amended complaint does not specify the amount of damages that it is seeking from the defendants: Community, Franklin, Tenn.; Wayne Smith, president, chairman and CEO; and Larry Cash, executive vice president and CFO. The amended complaint also refines its allegations that Community's admissions practices lead to inappropriate Medicare admissions. The lawsuit contends that Community's failure to disclose these practices and the potential fraud fines and reimbursement refunds that it might face made their statements about their proposed takeover of Tenet false and misleading.
Community rescinded its offer for Tenet on May 9, after Tenet rejected the final offer that Community made for the company. Community also dropped its proposed slate of nominees for election to Tenet's board at Tenet's annual shareholders meeting on Nov. 3. Community's offers, including the assumption of about $4 billion in Tenet's debt, were valued at $7.3 billion and nearly $8.1 billion, respectively.
Send us a letter
Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.