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Rehab Co. Barred From Selling Assets In Benefits Fraud Suit

Law360 (January 22, 2019, 7:34 PM EST) -- A California federal judge has granted a preliminary injunction barring a chain of shuttered Southern California rehabilitation centers from selling off various assets while the company faces a suit accusing it of misusing money meant to go toward a self-funded health benefit plan.

U.S. District Judge Andrew J. Guilford’s Friday order enjoined Sovereign Health from unloading certain assets that have to be identified, and required that Sovereign Health hand over to the court information regarding any property, real property or accounts that it has an interest in, along with how much those assets are worth.

According to the order, the judge...

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Case Title

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Court

California Central

Nature of Suit

Labor: E.R.I.S.A.

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Date Filed

June 7, 2018

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