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."
Law360
Health
THURSDAY, NOVEMBER 27, 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."

Complaint attached | Read full article » | Save to favorites »

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.

Memorandum attached | Read full article » | Save to favorites »

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.

Opinion attached | Read full article » | Save to favorites »

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.

Read full article » | Save to favorites »

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.

Order attached | Read full article » | Save to favorites »

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.

Order attached | Read full article » | Save to favorites »

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.

Settlement attached | Read full article » | Save to favorites »

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.

Read full article » | Save to favorites »

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.

Complaint attached | Read full article » | Save to favorites »

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.

Complaint attached | Read full article » | Save to favorites »

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.

Complaint attached | Read full article » | Save to favorites »

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.

Read full article » | Save to favorites »

LEGAL INDUSTRY

Bonus Spotlight

Magic Circle Firms Enchant Associates With Top-Tier Bonuses

By Tracey Read

U.S. associates at Linklaters LLP and Clifford Chance LLP have a lot to be thankful for this holiday season, as the Magic Circle firms Wednesday became the latest to match the BigLaw standard for this year's associate bonuses.

Read full article » | Save to favorites »

Analysis

After Big Win For 2 Trump Foes, A Third Faces 'Tougher Job'

By Phillip Bantz

The recent dismissal of federal criminal charges against New York Attorney General Letitia James and former FBI director James Comey does little to help President Donald Trump's ex-national security adviser John Bolton, whose defense in a classified-materials case presents a thornier set of legal and factual issues, experts say.

Read full article » | Save to favorites »

Roundup

Up Next At High Court: ISP Liability & State Subpoena Suits

By Katie Buehler

The U.S. Supreme Court will return Monday for the first week of its December oral argument session, during which the justices will consider whether internet service providers can be held liable for contributing to their customers' infringing activity online and whether the subjects of state subpoenas are required to first challenge them in state court. 

Read full article » | Save to favorites »

Interview

For Covington's Adrian Perry, Music Is A Family Affair

By Theresa Schliep

Despite having a famous rock star dad, Covington & Burling LLP partner Adrian J. Perry wasn't all that interested in being a musician as a young child, but he knew as early as 6 years old that he wanted to be a lawyer.

Read full article » | Save to favorites »

Analysis

Calif. Privacy Agency Gaining Steam Ahead Of 5th Anniversary

By Allison Grande

California's data privacy regulator has taken several notable steps in recent months, including handing down its first penalty upward of $1 million dollars and finalizing long-awaited rules on topics such as cybersecurity audits and technologies that use artificial intelligence, and the groundbreaking agency shows no signs of slowing down as its fifth anniversary approaches. 

Read full article » | Save to favorites »

Split 6th Circ. Shields Baker Donelson, Not City Councilman

By Matt Perez

In a published opinion, the Sixth Circuit has found that Baker Donelson Bearman Caldwell & Berkowitz PC is shielded by qualified immunity as outside counsel for the city of Nashville in litigation over the law firm's firing of a city election commission chair and member of the firm.

Opinion attached | Read full article » | Save to favorites »

Foley & Lardner Hit With Malpractice Suit Over Chancery Loss

By Rose Krebs

Foley & Lardner LLP has been sued in Delaware Superior Court by three officers of a now-defunct food recycling company who say the firm was negligent when representing them in a Chancery Court case that led to a $1.6 million judgment against them and another officer.

Complaint attached | Read full article » | Save to favorites »

DOJ Asks Court If It Can Release Epstein Files Under New Law

By Lauren Berg

The U.S. Department of Justice is seeking a New York federal court's permission to publicly release the files related to the investigation of late sex offender Jeffrey Epstein, clarifying Wednesday that it wants to release search warrant results, travel and financial records, police reports, and other materials.

4 documents attached | Read full article » | Save to favorites »

Keesal Young Poaching Suit Against Stradley Ronon Trimmed

By Madison Arnold

A California state judge cleared Keesal Young & Logan to pursue most of its lawsuit alleging Stradley Ronon Stevens & Young crossed the line when it recruited 10 former Keesal Young attorneys, finding that claims such as inducing breach of contract could move forward, in part, because of conversations among the attorneys.

1 document attached | Read full article » | Save to favorites »

DOJ Says Ex-Employees Can't Challenge Firings In Fed. Court

By Rose Krebs

The government says a D.C. federal court lacks jurisdiction to adjudicate a lawsuit filed by a former assistant U.S. attorney who prosecuted defendants charged in connection with the Jan. 6, 2021, attack on the U.S. Capitol and two other ex-Department of Justice employees, alleging they were unlawfully fired.

Motion attached | Read full article » | Save to favorites »

Hub Hires: Todd & Weld, Freshfields, Shipman

By Julie Manganis

It was a busy November in Boston's legal community as another firm expanded into the market, and a longtime judge traded his gavel for the ability to address his growing concerns about the Trump administration.

Read full article » | Save to favorites »

Promo that reads 2025 MVPs Promo that reads Law360 Pulse Compensation Report

COMPANIES IN TODAY'S NEWS

Acadia Healthcare Co. Inc.

Adobe Inc.

Alliance Defending Freedom

Apple Inc.

Audax Private Equity

Banner Health

CVS Health Corp.

Caterpillar Inc.

Cerberus Capital Management LP

Corning Inc.

Cox Communications 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

HealthCare Partners LLC

Honda Motor Co. Ltd.

JPMorgan Chase & Co.

Kaiser Permanente

LinkedIn Corp.

Medical Properties Trust Inc.

MetroHealth System

Microsoft Corp.

Nidec Corp.

OptumRx Inc.

Sony Music Entertainment Inc.

Steward Health Care System LLC

The Philadelphia Inquirer LLC

Todd Snyder

Tractor Supply Co.

Twitter Inc.

UnitedHealth Group Inc.

Universal Music Group NV

LAW FIRMS IN TODAY'S NEWS

Atkinson Andelson

Baker Donelson

Baker McKenzie

Berger Montague

Bradley Bernstein Sands

Broening Oberg

Bryson Harris Suciu & DeMay

Burakiewicz & DePriest

Burdick Law PC

Carella Byrne

Chipman Brown

Christensen Law LLC

Clement & Murphy

Clifford Chance

Cohen & Gresser

Covington & Burling

Cravath Swaine

Crowell & Moring

DLA Piper

Dowd Bloch

Dykema

Finnegan

Foley & Lardner

Freshfields

Gibson Dunn

Girard Sharp

Hodel Wilks

Holland & Knight

Keesal Young

Kessler Topaz

King & Spalding

Kirkland & Ellis

Klafter Lesser

LaRene & Kriger

Labaton Keller

Latham & Watkins

Linklaters LLP

Lowell & Associates

Mark S. Zaid PC

Markus Moss PLLC

Milbank LLP

Milberg Coleman

Morrison & Foerster

Nelson Mullins

Nutter McClennen

Ogletree Deakins

Orrick Herrington

Parkinson Benson

Phelps Dunbar

Pitta LLP

Pond Lehocky

Quinn Emanuel

Reid Collins

Riley & Jacobson

Robbins Geller

Ropes & Gray

Shipman & Goodwin

Skadden Arps

Slattery Petersen

Snell & Wilmer

Stradley Ronon

Terrell Marshall

The Epstein Law Firm PA

Todd & Weld

Vinson & Elkins

Weil Gotshal

Wilson PC

GOVERNMENT AGENCIES IN TODAY'S NEWS

California Privacy Protection Agency

City and County of San Francisco, California

Delaware Court of Chancery

Executive Office of the President

Federal Bureau of Investigation

Federal Trade Commission

Food and Drug Administration

Metropolitan Government of Nashville and Davidson County

National Security Council

New Jersey Attorney General's Office

New York Attorney General's Office

U.S. Attorney's Office

U.S. Attorney's Office for the District of Maryland

U.S. Attorney's Office for the District of Massachusetts

U.S. Attorney's Office for the Southern District of New York

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 Sixth 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 Eastern District of Virginia

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

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

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

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

U.S. Merit Systems Protection Board

U.S. Navy

U.S. Supreme Court

United States District Court for the Northern District of Ohio