What changed in this filing

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Item 1. Legal Proceedings

2020-10-28 compared with 2020-07-29 · 12 added, 58 removed, 131 unchanged (35% of the section changed)

17 unchanged sentences

Shareholder Litigation

2011 Class Action Shareholder Federal Securities Cases .

Three purported class action cases have been filed in the United States District Court for the Middle District of Tennessee;

namely, Norfolk County Retirement System v.

Community Health Systems, Inc., et al., filed May 9, 2011;

Community Health Systems, Inc., et al., filed May 12, 2011;

and Minneapolis Firefighters Relief Association v.

Community Health Systems, Inc., et al., filed June 21, 2011.

All three seek class certification on behalf of purchasers of our common stock between July 27, 2006 and April 11, 2011 and allege that misleading statements resulted in artificially inflated prices for our common stock.

In December 2011, the cases were consolidated for pretrial purposes and NYC Funds and its counsel were selected as lead plaintiffs/lead plaintiffs’ counsel.

In lieu of ruling on our motion to dismiss, the court permitted the plaintiffs to file a first amended consolidated class action complaint which was filed on October 5, 2015.

Our motion to dismiss was filed on November 4, 2015 and oral argument took place on April 11, 2016.

Our motion to dismiss was granted on June 16, 2016 and on June 27, 2016, the plaintiffs filed a notice of appeal to the Sixth Circuit Court of Appeals.

The matter was heard on May 3, 2017.

On December 13, 2017, the Sixth Circuit reversed the trial court’s dismissal of the case and remanded it to the District Court.

We filed a renewed partial motion to dismiss on February 9, 2018, which was denied by the District Court on September 24, 2018.

We also filed a petition for writ of certiorari with the United States Supreme Court on April 18, 2018 seeking review of the Sixth Circuit’s decision.

The United States Supreme Court denied the petition for a writ of certiorari on October 1, 2018.

The District Court granted the Plaintiff’s motion for class certification on July 26, 2019.

We filed a petition for permission to appeal the District Court’s class certification order in the Sixth Circuit Court of Appeals on August 9, 2019, and that petition was denied on October 23, 2019.

On January 21, 2020, the Company and the Plaintiff filed a stipulation of settlement indicating to the District Court that the parties had reached agreement on the principal terms of a settlement for $53 million, which was recognized during the three months ended

December 31, 2019 .

The settlement received preliminary approval from the Dist rict Court on January 30, 2020.

On June 22, 2020, the District Court granted final approval of the settlement and ordered the case dismissed with prejudice.

Caleb Padilla, individually and on behalf of all others similarly situated v Community Health Systems, Inc., Wayne T.

31 unchanged sentences

Commercial Litigation and Other Lawsuits

Gibson, individually and on behalf of all others similarly situated v.

National Healthcare of Leesville, Inc.

d/b/a Byrd Regional Medical Center.

This case is a purported class action lawsuit filed in the 30 th Judicial District Court for the State of Louisiana and served on August 3, 2016, claiming our formerly affiliated Leesville, Louisiana hospital violated payor contracts by allegedly improperly asserting hospital liens against third-party tortfeasors and seeking class certifications for any similarly situated plaintiffs.

The court has certified a class and denied our motion for summary judgment.

We appealed both rulings to the Louisiana Third Circuit Court of Appeals, which affirmed the trial court’s decisions on March 7, 2019.

We filed an application for writ of certiorari to the Louisiana Supreme Court, which was denied on May 29, 2019.

Plaintiff’s motion for approval of notice of class action was granted on October 24, 2019.

As a result of the Louisiana Supreme Court’s decision in the combined cases of Matthew DePhillips v.

Hospital Service District No.

1 of Tangipahoa Parish and Earnest Williams v.

Hospital Service District No.

1 of Tangipahoa Parish , issued on July 9, 2020, holding that the proper statute of limitations and class period for claims like those in Gibson is one year rather than ten years, we believe the potential liability in the Gibson case, if any, is not material.

Bowden, individually and on behalf of all others similarly situated v.

Ruston Louisiana Hospital Company, LLC d/b/a Northern Louisiana Medical Center.

This case is a purported class action lawsuit filed in the 3 rd Judicial District Court for the State of Louisiana and served on September 7, 2016, claiming our affiliated Ruston, Louisiana hospital violated payor contracts by allegedly improperly asserting hospital liens against third-party tortfeasors and seeking class certifications for any similarly situated plaintiffs.

Our motion for summary judgment is pending, as is plaintiff’s motion for class certification.

As a result of the Louisiana Supreme Court’s decision in the combined cases of Matthew DePhillips v.

Hospital Service District No.

1 of Tangipahoa Parish and Earnest Williams v.

Hospital Service District No.

1 of Tangipahoa Parish , issued on July 9, 2020, holding that the proper statute of limitations and class period for claims like those in Bowden is one year rather than ten years, we believe the potential liability in the Bowden case, if any, is not material.

Zwick Partners, LP and Aparna Rao, individually and on behalf of all others similarly situated v.

13 unchanged sentences

On May 17, 2019, the plaintiffs moved to amend their complaint for a third time to add additional claims, which the District Court denied on August 2, 2019.

All parties have now reached a tentative settlement of this case, and we are currently negotiating with plaintiffs on the final terms of the settlement to submit to the District Court for preliminary approval.

All parties have now reached a settlement of this case, which was preliminarily approved by the District Court on July 27, 2020.

On September 17, 2020, Greenlight Capital requested exclusion from the Class.

The hearing for final approval of the settlement by the District Court is set for November 30, 2020.

Steadfast Insurance Company, et al v.

27 unchanged sentences

We have reached a tentative, immaterial settlement with the plaintiffs and will be seeking court approval of the settlement.

Thomas Mason, MD, Steven Folstad, MD and Mid-Atlantic Emergency Medical Associates, PA v Health Management Associates, LLC f/k/a Health Management Associates, Inc., Mooresville Hospital Management Associates d/b/a Lake Norman Regional Medical Center and Statesville HMA, LLC d/b/a Davis Regional Medical Center, Envision Healthcare Corporation f/k/a Emergency Medical Services Corporation, Emcare Holdings, Inc., Emergency Medical Services, LP .

Center and Statesville HMA, LLC d/b/a Davis Regional Medical Center, Envision Healthcare Corporation f/k/a Emergency Medical Services Corporation, Emcare Holdings, Inc., Emergency Medical Services, LP .

This alleged wrongful retaliation case is filed in the United States District Court for the Western District of North Carolina.

5 unchanged sentences

We believe these claims are without merit and will vigorously defend the case.

Tower Health, f/k/a Reading Health System, et al v CHS/Community Health Systems, Inc., et al .

This breach of contract action is pending in the United States District Court for the Eastern District of Pennsylvania.

The plaintiffs allege breaches of an asset purchase agreement in connection with the sale of Pottstown Memorial Medical Center.

The alleged breaches regard plaintiffs’ contention that the defendants failed to disclose certain conditions related to the physical plant of the hospital.

The plaintiffs filed an amended complaint on July 22, 2019.

Trial for this matter is set for March 8, 2021.

We believe these claims are without merit and will vigorously defend the case.

Qui Tam Matters Where the Government Declined Intervention

6 unchanged sentences

We believe this matter is without merit and will vigorously defend this case.

Derek Lewis and Joey Neiman v.

Community Health Systems, Inc., Medhost, Inc., et al .

By order filed on March 14, 2019, the United States District Court for the Southern District of Florida ordered the unsealing of this qui tam suit.

The order revealed that the United States had declined to intervene in the action.

The complaint alleges that Community Health Systems, Inc.

and its affiliated hospitals (CHS Hospitals) violated the False Claims Act by submitting claims for EHR Meaningful Use incentive payments that they knew or should have known were false.

The allegations regarding falsity generally relate to the CHS Hospitals’ use of certain software products sold to them by co-defendant, Medhost, Inc.

The plaintiffs amended their complaint on July 26, 2019.

We filed a motion to dismiss the complaint on September 24, 2019.

On June 11, 2020, the District Court granted our motion to dismiss with prejudice.

On July 13, 2020, we reached a non-monetary settlement with plaintiffs in which, among other things, they agreed not to appeal the District Court’s decision.

Elie Hage-Korban, M.D., Delta Clinics, PLC d/b/a The Heart and Vascular Center of West Tennessee.

20 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Legal Proceedings