Tenet Board Maintains Victory Over Kickback Scheme Suit

By Katie Buehler (September 29, 2020, 5:05 PM EDT) -- Tenet Healthcare Corp. shareholders can't revive a derivative suit that alleged board members knew about, but did nothing to stop, a kickback scheme that led to a $513 million False Claims Act settlement because there weren't enough details in the pleadings, a Texas appellate court ruled.

A three-justice Fifth Court of Appeals panel in Dallas on Monday affirmed the dismissal of a lawsuit brought by shareholders City of Warren Police and Fire Retirement System and Janice Stewart, saying it failed to sufficiently show board members knew of any misconduct by the company. The panel denied the shareholders' argument that they would...

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