HMO, Hedge Fund, Firms Hit With Medicare Contract Buy Suit

Law360, New York (January 15, 2013, 3:46 PM EST) -- Envision Insurance Co. on Friday sued a number of law firms, defunct health maintenance organization QHP Group Inc. and hedge fund Vicis Capital LLC in Florida federal court, alleging they had engaged in a scheme to mislead Envision about a QHP Medicare contract it agreed to buy.

According to Envision, QHP, its executives and its equity partner, Vicis, had misrepresented QHP’s perilous financial situation and hid evidence of its noncompliance with Medicare regulations from the insurer, causing it to put a $600,000 down payment on a...
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