Bankrupt hospital operator Steward Health has filed hundreds of millions in new claims in Texas bankruptcy court against its former CEO and other executives, including allegations that they orchestrated a sale-leaseback deal that rendered the business an insolvent "zombie."
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WEDNESDAY, NOVEMBER 26, 2025 Law360 iOS App Law360 Android App Follow Law360 on Facebook Follow Law360 on LinkedIn Follow Law360 on Twitter

TOP NEWS

New Complaint Says Ex-Execs Turned Steward Into 'Zombie'

By Rick Archer

Bankrupt hospital operator Steward Health has filed hundreds of millions in new claims in Texas bankruptcy court against its former CEO and other executives, including allegations that they orchestrated a sale-leaseback deal that rendered the business an insolvent "zombie."

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Medical AI Co. Accused Of 'Smear Campaign' Against Rivals

By Julie Manganis

Two rivals of medical artificial intelligence platform OpenEvidence have told a Massachusetts federal judge the startup has used the courts in a campaign of "deceit, harassment and defamation" against competitors.

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Ariz. Court Partially Reinstates Banner Health Death Suit

By Y. Peter Kang

An Arizona appellate court has revived a wrongful death suit accusing a Banner Health hospital and a physician of causing a patient's death from drug complications, saying the statute of limitations didn't begin running until the plaintiff received the relevant medical records.

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ENFORCEMENT & COMPLIANCE

Mich. Pharmacist Gets 46 Months For $4M Fraud Scheme

By Parker Quinlan

A former Michigan pharmacist who pled guilty to orchestrating a $4 million Medicare scam was sentenced by a federal judge to 46 months in prison and ordered to pay restitution and forfeit property as part of a plea deal, the U.S. Department of Justice announced.

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LITIGATION

UnitedHealth Gets OptumRx Antitrust Suit Sent To Arbitration

By Rachel Riley

A group of independent pharmacies must arbitrate their proposed class claims that UnitedHealth-owned OptumRx gatekeeps its network of Medicare prescription patients by imposing unfair fees, a Washington federal judge said Tuesday, concluding the pharmacies haven't shown the arbitration clauses in question are unenforceable.

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Health System Can't Dodge Worker's Time-Rounding Claims

By Irene Spezzamonte

An Ohio county health system can avoid a nursing assistant's claim that it failed to pay semimonthly wages on time, but she can continue pursuing her claims that the company illegally rounded down workers' time, a federal judge ruled.

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Acadia Healthcare Investors Seek First OK For $179M Deal

By Katryna Perera

Acadia Healthcare Co. Inc. investors asked a Tennessee federal judge to grant the first green light to a $179 million settlement in a class action alleging the company misled them about the strength of its U.K. operations.

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Kaiser Cleared To Pay $46M For Sharing Data With Tech Cos.

By Bonnie Eslinger

A California federal judge granted preliminary approval Tuesday to a settlement of at least $46 million from three Kaiser Permanente entities to resolve claims by 13.1 million patients across the country who say it disclosed their information to Google, Microsoft, Twitter and other third parties without consent.

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Jefferson Health Sued Over Handling Of 'Mass Layoff'

By P.J. D'Annunzio

Thomas Jefferson University's healthcare division has been hit with a proposed class action alleging the institution violated the Worker Adjustment and Retraining Notification Act when it recently laid off over 500 workers.

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Healthcare Software Founders Sue In Del. For Sale Details

By Jeff Montgomery

A couple who sold their healthcare software business to an interest of Elevate RCM Holdings LLC before the buyer allegedly resold it for a reported $1 billion sued for company records in Delaware's Court of Chancery late Monday, seeking documents needed to confirm the deal's fairness.

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NJ Hospital Fired Doc In Bid 'To Get Younger,' Suit Says

By George Woolston

A New Jersey physician who worked in the neonatal intensive care unit at Hackensack University Medical Center was fired because of his age, according to a complaint filed this week in New Jersey state court.

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EXPERT ANALYSIS

Considerations When Invoking The Common-Interest Privilege

To successfully leverage the common-interest doctrine in a multiparty transaction or complex litigation, practitioners should be able to demonstrate that the parties intended for it to apply, that an underlying privilege like attorney-client has attached, and guard against disclosures that could waive privilege and defeat its purpose, say attorneys at DLA Piper.

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LEGAL INDUSTRY

Bonus Spotlight

Weil Matches Year-End And Special Bonuses For Associates

By Anna Sanders

Weil Gotshal & Manges LLP on Tuesday joined a cadre of other firms in matching the BigLaw standard for this year's associate bonuses.  

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Judges Decline Invites To Senate Hearing On Impeachment

By Courtney Bublé

Two federal judges, both of whom Republicans are looking to impeach, declined to testify before the U.S. Senate Judiciary Committee's hearing next week on the impeachment of "rogue" judges, a source familiar with the situation told Law360 on Tuesday.

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DOJ Official Sues Over Firing For Epstein Talk On Hinge 'Date'

By Alison Knezevich

A longtime official at the U.S. Department of Justice who was fired after he was secretly recorded discussing the Epstein files has sued the agency and U.S. Attorney General Pam Bondi in D.C. federal court.

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Democrats Seek Documents On Emil Bove's DOJ Tenure

By Courtney Bublé

Senate Democrats are turning to public records requests to learn more about the controversial tenure of U.S. Circuit Judge Emil Bove while he served at the U.S. Department of Justice, claiming that they're being "stonewalled" by the department.

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$255K In Fees To Google For 'Frivolous' Ramey Case Upheld

By Ryan Davis

The Federal Circuit on Tuesday affirmed a California judge's decision that a client of embattled intellectual property firm Ramey LLP must pay nearly $255,000 in fees and sanctions for bringing a "frivolous" patent suit against Google, finding the award to be "entirely proper."

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Fla. Law Student Expelled For Antisemitic Post To Be Reenrolled

By David Minsky

A Florida federal judge has ordered the reinstatement of a law school student who was expelled after he was investigated over antisemitic posts on social media, saying the university didn't prove his speech "constituted a true threat." 

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Texas Law Firm, Atty Reach Tentative Deal In Age Bias Suit

By Rose Krebs

An attorney who sued a Houston-based law firm alleging she was fired in retaliation for having complained about age discrimination has reached "a tentative agreement" to resolve the matter, according to a filing in Illinois federal court.

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Husch Blackwell Blasts Ex-Firm Atty's ERISA Suit

By James Boyle

A former Husch Blackwell LLP partner's claim that the firm violated federal law by withholding monthly retirement account contributions misidentified the funds in question as participant contributions, when they were, in fact, contributions from the firm's year-end profit-sharing program.

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COMPANIES IN TODAY'S NEWS

Acadia Healthcare Co. Inc.

Adobe Inc.

Apple Inc.

Audax Private Equity

Banner Health

CVS Health Corp.

Caterpillar Inc.

Cerberus Capital Management LP

Corning Inc.

Dow Inc.

Edgewater Funds

Elevate Patient Financial Solutions Inc.

Express Scripts Holding Co.

Fresh Del Monte Produce Inc.

Google LLC

Hackensack Meridian Health

Hackensack University Medical Center

Harvard University

HealthCare Partners LLC

Kaiser Permanente

Medical Properties Trust Inc.

MetroHealth System

Microsoft Corp.

Netflix Inc.

Nidec Corp.

OptumRx Inc.

Steward Health Care System LLC

The Philadelphia Inquirer LLC

Twitter Inc.

UnitedHealth Group Inc.

YouTube Inc.

LAW FIRMS IN TODAY'S NEWS

Berger Montague

Bradley Bernstein Sands

Broening Oberg

Bryson Harris Suciu & DeMay

Burdick Law PC

Carella Byrne

Chipman Brown

Cohen & Gresser

Cravath Swaine

Crowell & Moring

DLA Piper

Disparti Law Group

Dowd Bloch

Gibson Dunn

Holwell Shuster

Husch Blackwell

Jackson Lewis PC

Kessler Topaz

King & Spalding

Kirkland & Ellis

Klafter Lesser

LaRene & Kriger

Labaton Keller

Mark S. Zaid PC

Milbank LLP

Milberg Coleman

Nutter McClennen

Ogletree Deakins

Parkinson Benson

Perkins Coie

Pitta LLP

Pond Lehocky

Quinn Emanuel

Ramey LLP

Reid Collins

Riley & Jacobson

Robbins Geller

Ropes & Gray

SBSB Eastham

Sabatini Law Firm PA

Sanford Heisler

Schaerr Jaffe

Skadden Arps

Slattery Petersen

Terrell Marshall

The Epstein Law Firm PA

Vinson & Elkins

Weil Gotshal

Wiley Rein

Wilson PC

GOVERNMENT AGENCIES IN TODAY'S NEWS

City and County of San Francisco, California

Delaware Court of Chancery

Equal Employment Opportunity Commission

Federal Bureau of Investigation

Federal Trade Commission

Food and Drug Administration

U.S. Attorney's Office

U.S. Court of Appeals for the Federal Circuit

U.S. Court of Appeals for the Second Circuit

U.S. Court of Appeals for the Third Circuit

U.S. Department of Health and Human Services

U.S. Department of Justice

U.S. District & Bankruptcy Courts of Southern District of Texas

U.S. District Court for the District of Columbia

U.S. District Court for the District of Maryland

U.S. District Court for the District of Massachusetts

U.S. District Court for the Eastern District of Michigan

U.S. District Court for the Eastern District of New York

U.S. District Court for the Eastern District of Pennsylvania

U.S. District Court for the Middle District of Tennessee

U.S. District Court for the Northern District of California

U.S. District Court for the Northern District of Florida

U.S. District Court for the Northern District of Illinois

U.S. District Court for the Southern District of New York

U.S. District Court for the Western District of Missouri

U.S. District Court for the Western District of Texas

U.S. District Court for the Western District of Washington

U.S. Senate

United States District Court for the Northern District of Ohio