Deals & Corporate Governance
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February 28, 2024
Gov't Contracts Of The Month: AI, $1.2B Submarine Upkeep
In February, the U.S. Patent and Trademark Office announced a deal to expand its artificial intelligence capabilities, the U.S. Navy gave a shipbuilder $1.2 billion to begin its overdue overhaul of the USS Boise, and the U.S. Defense Health Agency expanded its contractor pool for a $2.5 billion information technology deal, after being accused of unfairly evaluating bidders' proposals. These are Law360's top government contracts for February.
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February 27, 2024
NY Hospital Says PE-Owned Anesthesia Co. Monopolizes Care
A hospital based in New York state says a private equity company that manages anesthesia services is exercising monopoly power and putting the hospital at risk of facing a "crippling shortage" of anesthesia providers, according to a suit filed in federal court.
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February 27, 2024
Judge Trims Medical Device Royalty Fight
A Minnesota federal judge has held that Security Bank & Trust Co. failed to prove jurisdiction against various entities related to an Indiana-based medical device manufacturer in a suit over royalty contracts.
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February 27, 2024
Veradigm To Acquire ScienceIO, Face Potential Nasdaq Delisting
Healthcare technology company Veradigm announced Tuesday that it would acquire language model startup ScienceIO in a $140 million deal that would help it extract more insights from its data and launch new features across its business.
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February 27, 2024
DC Circ. Rejects Hospital's NLRB 'Successor Bar' Challenge
The D.C. Circuit on Tuesday upheld a National Labor Relations Board decision finding a Puerto Rico hospital unlawfully withdrew recognition from a union after inheriting five bargaining units, rejecting the company's challenge to a board standard blocking employers from withdrawing recognition after acquiring a unionized company's operations.
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February 27, 2024
Anesthesia Group Settles Colo. AG's Monopoly Claims
U.S. Anesthesia Partners has said it would cede control of deals with several Colorado hospitals and pay $200,000 in legal fees to settle the state attorney general's allegations that the practice group had anti-competitive control of the market.
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February 27, 2024
Arnold & Porter Transactions Vet Joins Foley & Lardner
Foley & Lardner LLP announced it has brought on a former Arnold & Porter Kaye Scholer LLP attorney with over 30 years of experience working on transactional matters as a partner in its Silicon Valley, California, office.
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February 27, 2024
Hospital Denies Nurses OT For Work During Breaks, Suit Says
A Michigan hospital has been refusing to pay a group of nurses and technicians overtime wages by automatically deducting pay for meal breaks they cannot take, according to a proposed collective action filed in federal court.
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February 26, 2024
Stimwave Prosecutors Accused Of Brady Violation Mid-Trial
The former CEO of Stimwave Technologies has alleged in the middle of her criminal fraud trial that the Manhattan U.S. Attorney's Office withheld key evidence about proffer meetings, teeing up a potential Brady fight before a skeptical judge.
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February 26, 2024
Ropes & Gray-Led THL Taking Agiliti Private In $2.5B Deal
Medical equipment management company Agiliti is going private in a deal with private equity firm Thomas H. Lee Partners, Agiliti announced Monday.
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February 26, 2024
Justices Say Tribes Can Argue Separately In Healthcare Row
Two Native American tribes seeking to uphold rulings that ordered the federal government to reimburse them millions of dollars in administrative healthcare costs can argue their cases separately, the U.S. Supreme Court said Monday.
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February 23, 2024
Health REIT Hid Halted $375M Equity Stake Deal, Suit Says
A Medical Properties Trust Inc. shareholder accused the hospital-focused real estate investment trust in Maryland federal court of hiding the California government's halting of a $375 million equity stake transaction with a healthcare management services company.
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February 23, 2024
Healthcare AI Startup Abridge Raises $150M
AI clinical documentation company Abridge said on Friday that it had raised a $150 million series C round to build on its existing product lines and accelerate research and development.
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February 23, 2024
Walgreens Investors Near Deal In Suit Over Opioid Epidemic
An Illinois federal judge agreed Friday to maintain a stay in a stockholder derivative suit accusing Walgreens and its leadership of failing to limit retail pharmacies from dispensing unreasonable amounts of opioids, a day after the parties announced an agreement in principle to resolve their dispute.
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February 23, 2024
Eye Care Tech Co. Gets Go-Ahead For April Sale In Ch. 11
A Texas bankruptcy judge said Friday she will approve sale procedures that will put a troubled optometry software maker on the block in April, after the debtor said it will give creditors a few more days to respond if it decides to name a stalking horse bidder.
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February 22, 2024
North Carolina Hospitals Can't Exit Monopoly Claims
Two healthcare companies cannot escape a consolidated antitrust suit claiming that a North Carolina hospital system drove up the price of health insurance for public employees, as a federal judge has found that the claims plausibly allege that the anti-competitive conduct occurred within the time window to sue.
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February 22, 2024
Biotech VC Firm ORI Capital Closes $260M Fund
Biotech venture capital firm ORI Capital announced Thursday that it has closed a $260 million fund to invest in early-stage biotech companies globally.
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February 22, 2024
Locke Lord Settles Failed Health Plan Malpractice Suit
Locke Lord LLP has reached a settlement to resolve a health plan fiduciary's malpractice suit alleging the firm provided bad legal advice that doomed the plan, permanently ending an Illinois federal suit first filed in 2018.
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February 21, 2024
Actelion Cites FDA Safety Rules Against Tracleer Antitrust Suit
Actelion Pharmaceuticals Ltd. said federal rules controlling distribution of potentially dangerous drugs spare it from antitrust litigation over its hypertension drug Tracleer, arguing it was required to deny needed samples to would-be generic competitors until they presented the right certification of safeguards.
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February 21, 2024
Calif. Bill Would Let AG Audit Private Equity Healthcare Deals
California Attorney General Rob Bonta and Assembly Speaker Pro Tempore Jim Wood have filed legislation that will give the state's AG oversight of private equity and hedge fund acquisitions of healthcare facilities, saying that private equity is causing soaring consumer costs.
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February 21, 2024
JPMorgan Got $400M Before Inovalon Sale, Del. Justices Hear
Inovalon didn't properly disclose that investors that bought the healthcare data company in 2021 paid $400 million in fees to its financial adviser, a JPMorgan unit, before the transaction, a reason enough to revive a lawsuit challenging the $7.3 billion acquisition, counsel for stockholders told Delaware's Supreme Court Wednesday.
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February 20, 2024
US Trustee Wants Sorrento Ch. 11 Tossed Or Relocated
The U.S. Trustee's Office has moved to have Sorrento Therapeutics' Chapter 11 case dismissed, alleging the biopharmaceutical company manufactured a venue in Texas bankruptcy court, even as the debtor asked for court approval to sell off its assets to its CEO under a revised reorganization plan.
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February 20, 2024
Biology AI Startup Bioptimus Raises $35M Seed Round
Artificial intelligence startup Bioptimus has raised $35 million to build an AI foundational model focused on biology, the company announced Tuesday.
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February 20, 2024
$71M Deal Proposed To End Premier Inc. Share Exchange Suit
Healthcare-purchasing giant Premier Inc. has agreed to a $71 million settlement of a derivative stockholder suit in Delaware's Chancery Court that challenged a $473.5 million payout in a 2020 restructuring, with stockholder attorneys seeking an award of up to $14 million in fees.
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February 20, 2024
Latham Adds Cooley Company Growth Pros In San Francisco
Latham & Watkins LLP is expanding its West Coast corporate team, announcing Tuesday that it is bringing in a pair of Cooley LLP experts in emerging-growth companies as partners in its San Francisco Bay Area offices.
Expert Analysis
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Judicial Independence Needs Defense Amid Political Threats
Amid recent and historic challenges to the judiciary from political forces, safeguarding judicial independence and maintaining the integrity of the legal system is increasingly urgent, says Robert Peck at the Center for Constitutional Litigation.
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FDI Considerations For UK Venture Capital Transactions
With the U.K. National Security and Investment Act highlighting foreign direct investment matters for venture capital transactions, investors dealing with companies connected to the U.K. should be alive to how the act's requirements can affect deal timelines, structures and terms, say lawyers at Covington.
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How Law Firms Can Use Account-Based Marketing Strategies
Amid several evolving legal industry trends, account-based marketing can help law firms uncover additional revenue-generating opportunities with existing clients, with key considerations ranging from data analytics to relationship building, say Jennifer Ramsey at stage LLC and consultant Gina Sponzilli.
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A Reminder For Drug Cos. To Confirm Orange Book Listings
A recent policy statement from the Federal Trade Commission highlights the legal danger that pharmaceutical companies can face for improperly listing patents in the U.S. Food and Drug Administration's Orange Book, which is also an issue in the context of Hatch-Waxman litigation, say attorneys at Kirkland.
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Strategic Succession Planning At Law Firms Is Crucial
Senior partners' reluctance to retire, the rise of the nonequity partner tier and generational differences in expectations are all contributing to an increasing number of departures from BigLaw, making it imperative for firms to encourage retirement among senior ranks and provide clearer leadership pathways to junior attorneys, says Laura Leopard at Leopard Solutions.
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FTC's Health Co. Suit Indicates Agency's Private Equity Focus
The Federal Trade Commission's latest lawsuit against an anesthesia company and its private equity investor highlights the agency's willingness to regulate the health care industry even when relevant acquisitions are relatively dated or when the controlling entity's economic interest is under 50%, say attorneys at Simpson Thacher.
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Top 4 Antitrust Enforcement Issues In Health Care Today
The Federal Trade Commission's recent lawsuit against U.S. Anesthesia Partners exemplifies antitrust enforcement authorities' efforts to aggressively reshape the health care industry, ranging from new proposed rules to withdrawals of previous guidance, say attorneys at Fried Frank.
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Calif. Climate Disclosure Bills Promise Challenges For Cos.
Two novel climate disclosure bills recently passed by the California Legislature will pose challenges for many businesses — especially private companies that are less familiar with climate-related reporting obligations — and will require investments of significant time and effort in processes, procedures and personnel, say John Rousakis and Chris Bowman at O'Melveny.
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Maximizing Law Firm Profitability In Uncertain Times
As threats of an economic downturn loom, firms can boost profits by embracing the power of bottom-line management and creating an ecosystem where strategic financial oversight and robust timekeeping practices meet evolved client relations, says Shireen Hilal at Maior Strategic Consulting.
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7 Common Compliance Pitfalls For Multistate Pharmacies
In light of a California bill recently introduced to prevent medication errors at understaffed chain pharmacies — which could add yet another regulatory hurdle for certain establishments operating across the U.S. — pharmacies operating in multistate capacities must proactively mitigate operational risks, say attorneys at Troutman Pepper.
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5th Circ. Ruling Reminds Attys That CBP Can Search Devices
The Fifth Circuit’s recent Malik v. Department of Homeland Security decision adds to the chorus of federal courts holding that border agents don’t need a warrant to search travelers’ electronic devices, so attorneys should consider certain special precautions to secure privileged information when reentering the U.S., says Jennifer Freel at Jackson Walker.
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ESG Around The World: European Union
As the EU makes ESG regulation a priority, companies — both those based in the EU and others just doing business there — need to keep abreast of myriad new legislation that has either already taken effect or will in the near future, as noncompliance could result in fines, damages and director liability, say attorneys at Steptoe & Johnson.
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Avoiding The Ethical Pitfalls Of Crowdfunded Legal Fees
The crowdfunding of legal fees has become increasingly common, providing a new way for people to afford legal services, but attorneys who accept crowdsourced funds must remember several key ethical obligations to mitigate their risks, say Hilary Gerzhoy and Julienne Pasichow at HWG.