Amedisys falls as divestiture buyer in sale to UnitedHealth has legal judgement against it
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Amedisys (NASDAQ:AMED) dropped 4.4% after the proposed divestiture buyer in its planned sale to UnitedHealth (UNH) had a legal judgement against it.
VitalCaring, the proposed buyer of Amedisys and UnitedHealth healthcare facilities, lost a legal judgement as a court ruled that future profits for its operations must be used to pay Encompass Health Corp. and EHAB.
“Encompass is entitled to one recovery,” according to a court opinion on Monday in the court out Delaware Chancery Court. “That recovery takes the form of an equitable payment stream of VitalCaring’s future profits to be administered via a constructive trust, certain mitigation damages, and attorneys’ fee.”
UnitedHealth (UNH) announced in late June an agreement with VitalCaring Group to sell some of the two companies’ healthcare centers.
UnitedHealth, Amedisys and VitalCaring didn’t immediately respond to Seeking Alpha email requests for comment.
The legal judgement comes as the Dept. of Justice last month filed a lawsuit to challenge Amedisys’ (NASDAQ:AMED) planned $3.3 billion sale to UnitedHealth (UNH). The DOJ and four states filed a lawsuit on to block the combination. UnitedHealth’s Optum unit said in a statement at the time that it would “vigorously defend against the DOJ’s overreaching interpretation of the antitrust laws.”