6th Circ. Revives $376M General Medicine, Horizon/CMS Deal

Law360, New York (April 10, 2012, 4:23 PM EDT) -- The Sixth Circuit on Tuesday reinstated a $376 million settlement between geriatric medical services company General Medicine PC and Horizon/CMS Healthcare Corp. over a contract service dispute, saying a lower court erred when it threw out the agreement three years ago.

The three-judge panel said in its order that a Michigan federal court was wrong in finding that General Medicine and Horizon/CMS, a former subsidiary of HealthSouth Corp., had engaged in "fraud on the court" by failing to disclose material facts related to the settlement, namely that Horizon would be on the hook for only $300,000 and General Medicine planned to go after HealthSouth...

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