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...
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