12 unchanged sentences
Participating in voluntary repayments and voluntary disclosure protocols can have the potential for significant settlement obligations or even enforcement action.
−Removed: The following legal proceedings are described in detail because, although they may not be required to be disclosed in this Part II, Item 1 under SEC rules, due to the nature of the business of the Company, we believe that the following discussion of these matters may provide useful information to security holders.
+Added: The following legal proceedings are described in detail because, although certain legal proceedings may not be required to be disclosed in this Part II, Item 1 under SEC rules, due to the nature of the business of the Company, we believe that the following discussion of these matters may provide useful information to security holders.
This discussion does not include claims and lawsuits covered by medical malpractice, general liability or employment practices insurance and risk retention programs, none of which claims or lawsuits would in any event be required to be disclosed in this Part II, Item 1 under SEC rules.
10 unchanged sentences
Padilla Derivative Litigation .
−Removed: Five purported shareholder derivative cases have been filed in two District Courts relating to the factual allegations in the Padilla litigation;
+Added: Four purported shareholder derivative cases have been filed in two District Courts relating to the factual allegations in the Padilla litigation;
+Added: Three of these cases have been consolidated in In re Community Health Systems, Inc.
+Added: Shareholder Derivative Litigation and are pending in the United States District Court for the District of Delaware ;
namely, Faisal Hussain v.
−Removed: Smith, et al, filed August 12, 2019 in the United States District Court for the District of Delaware;
−Removed: Roger Trombley v.
−Removed: Smith, et al, filed August 20, 2019 in the United States District Court for the Middle District of Tennessee;
+Added: Smith, et al, filed August 12, 2019;
Susheel Tanjavoor v.
−Removed: Smith, et al., filed August 29, 2019, in the United States District Court for the District of Delaware;
−Removed: Roofers Local No.
−Removed: 149 Pension Fund v.
−Removed: Clerico, et al, filed October 30, 2019, in the United States District Court for the District of Delaware;
+Added: Smith, et al., filed August 29, 2019;
and Kevin Aronson v.
−Removed: Smith, et al , filed April 29, 2020 in the United States District Court for the District of Delaware.
−Removed: All five seek relief derivatively and on behalf of Community Health Systems, Inc.
+Added: Smith, et al , filed April 29, 2020.
+Added: The fourth case, Roger Trombley v.
+Added: Smith, et al, filed August 20, 2019 , is pending in the United States District Court for the Middle District of Tennessee.
+Added: All four cases seek relief derivatively and on behalf of Community Health Systems, Inc.
against certain Company officers and directors based on alleged breaches of fiduciary duty, unjust enrichment, and other acts related to certain Company disclosures in 2017 and 2018 regarding the Company’s adoption of Accounting Standards Update 2014-09, which the Company adopted effective January 1, 2018.
−Removed: The defendants filed a Motion to Stay on October 21, 2020, which is pending.
−Removed: Other Government Investigations
−Removed: Florida LIP Program CIDs – On September 14, 2017, our hospital in St.
−Removed: Petersburg, Florida received a CID from the United States Department of Justice for information concerning its historic participation in the Florida Low Income Pool Program.
−Removed: The Low Income
−Removed: Pool Program, or LIP, is a funding pool to support healthcare providers that provide uncompensated care to Florida residents who are uninsured or underinsured.
+Added: All four cases are stayed by court order until the United States District Court for the Middle District of Tennessee rules on the defendants’ motion to dismiss in the Padilla action.
+Added: Oui Tam Litigation
+Added: ex rel Larry Bomar v.
+Added: Bayfront HMA Medical Center, LLC, et al – On September 14, 2017, our former hospital in St.
+Added: Petersburg, Florida received a civil investigative demand, or CID, from the United States Department of Justice for information concerning its historic participation in the Florida Low Income Pool Program.
+Added: The Low Income Pool Program, or LIP, is a funding pool to support healthcare providers that provide uncompensated care to Florida residents who are uninsured or underinsured.
The CID sought documentation related to agreements between the hospital and Pinellas County.
On June 13, 2019, an additional ten of our affiliated hospitals in Florida received CIDs related to the same subject matter, along with two CIDs addressed to our affiliated management company and the parent company.
−Removed: We are cooperating fully with this investigation.
+Added: We cooperated fully with the investigation.
+Added: On September 15, 2021, the United States District Court for the Middle District of Florida ordered the unsealing of this qui tam complaint, which contains allegations related to the information sought in the September 14, 2017 CID.
+Added: Specifically, the relator claims our former hospital in St.
+Added: Petersburg – Bayfront Medical Center St.
+Added: Petersburg – along with other, unaffiliated hospitals violated the False Claims Act by allegedly making certain contributions to a non-profit entity for the purpose of receiving supplemental Medicaid funding.
+Added: The United States has declined to intervene in the case.
Commercial Litigation and Other Lawsuits
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Trial in the Steadfast and Community Health Systems, Inc.
−Removed: consolidated cases is set for December 13, 2021.
+Added: consolidated cases is set for December 6, 2021, and the Steadfast plaintiffs’ motions for summary judgment are pending.
The Sperling II case is stayed pending the outcome of Steadfast and Community Health Systems, Inc .
13 unchanged sentences
The plaintiffs filed an amended complaint on July 22, 2019.
−Removed: Trial for this matter began May 3, 2021, and closing arguments are scheduled to occur on October 5, 2021.
+Added: Trial for this matter began May 3, 2021, and closed on October 5, 2021.
+Added: The court has not issued a decision.
We believe these claims are without merit and are vigorously defending the case.
1 unchanged sentence
This breach of fiduciary duty and demand for accounting case is pending in the Court of Common Pleas of Lancaster County, Pennsylvania.
−Removed: The plaintiffs are certain minority members of Rose City HMA, LLC, which formerly owned and operated Lancaster Regional Medical Center.
+Added: The plaintiffs are certain minority
+Added: members of Rose City HMA, LLC, which formerly owned and operated Lancaster Regional Medical Center.
The plaintiffs generally claim they are entitled to additional compensation related to the sale of Lancaster Regional Medical Center by Rose City HMA, LLC over and above what they have already received from the proceeds of the sale.
We believe these claims are without merit and will vigorously defend the case.
+Added: Golden, as Litigation Trustee of the QHC Litigation Trust, and Wilmington Savings Fund Society, FSB, solely in its capacity as indenture trustee v Community Health Systems, Inc., et al .
+Added: A complaint in this case was filed on October 25, 2021 in the United States Bankruptcy Court for the District of Delaware against various persons, including the Company, certain subsidiaries of the Company, certain former executive officers of the Company and Credit Suisse Securities (USA) LLC.
+Added: Plaintiff Daniel H.
+Added: Golden is the litigation trustee for a litigation trust which was formed under the plan of reorganization of Quorum Health Corporation, or QHC, and certain affiliated entities confirmed by order of the United States Bankruptcy Court for the District of Delaware wherein QHC and certain affiliated entities contributed various causes of action to such litigation trust.
+Added: Plaintiff Wilmington Savings Fund Society is the indenture trustee for certain notes issued by QHC.
+Added: The complaint seeks damages and other forms of recovery arising out of certain alleged actions taken by the Company and the other defendants in connection with the spin-off of QHC which was completed on April 29, 2016, and includes claims for unjust enrichment and for avoidance of certain transactions and payments by QHC to the Company connected with the spin-off, including the special dividend paid by QHC to the Company as part of the spin-off transactions.
+Added: We believe these claims are without merit and will vigorously defend the case.
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.