Liberty Medical Blames Bankruptcy On Former Owner Medco

Law360, Wilmington (March 10, 2014, 7:41 PM EDT) -- Bankrupt Liberty Medical Supply Inc. launched an adversary suit Friday alleging that former owner Medco Health Solutions Inc. breached the terms of their 2012 sale agreement, costing Liberty tens of millions of dollars and spurring its quick decent into Chapter 11.

Liberty contends its 2013 bankruptcy filing was necessary because Medco had misrepresented the finances of Polymedica Corp., which included the Liberty Medical business, and overstated the value of its assets before Liberty management bought the company for $30 million in December 2012. It also claims...
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