5 unchanged sentences
The plaintiff in the Delaware Action asserted claims against (i) certain current and former members of the Company’s Board of Directors (together, the "Directors");
−Removed: Capital, LLC and certain of its affiliates (collectively, "H.I.G.");
+Added: Capital, LLC and certain of its affiliates (collectively, the "H.I.G.
and (iii) Bain Capital Private Equity, L.P.
−Removed: and certain of its affiliates (collectively, "Bain Capital" and, together with the Directors and H.I.G., the "Defendants").
+Added: and certain of its affiliates (collectively, "Bain Capital" and, together with the Directors and the H.I.G.
+Added: Parties, the "Defendants").
The plaintiff asserted derivative claims on behalf of the Company, which is a nominal defendant in the Delaware Action, as well as putatively direct claims on behalf of a purported class of Company stockholders.
6 unchanged sentences
Following that decision, all of the Directors have been dismissed from the Delaware Action.
−Removed: The Court did not dismiss the plaintiff’s breach of fiduciary duty claim against H.I.G.
−Removed: or the aiding and abetting claim asserted against Bain Capital.
+Added: The Court did not dismiss the plaintiff’s breach of fiduciary duty claim against the H.I.G.
+Added: Parties or the aiding and abetting claim asserted against Bain Capital.
However, the Court dismissed the plaintiff’s breach of fiduciary duty and unjust enrichment claims against Bain Capital.
1 unchanged sentence
Accordingly, all of the plaintiff’s remaining claims in the Delaware Action are asserted derivatively on the Company’s behalf.
−Removed: Government Investigation.
−Removed: On October 23, 2017, the Company received several civil investigative demands ("CIDs") from the federal government under the FCA for documents and information dating back to January 1, 2010 relating to the medical necessity of certain drug tests conducted by the Company’s physicians and submitted to laboratories owned and operated by the Company.
−Removed: In addition, the Company was informed by CMS that payments to its diagnostic laboratory, Logan Laboratories, were suspended for a period of time, pending further investigation by CMS.
−Removed: CMS lifted the suspension as of December 18, 2019.
−Removed: On January 23, 2020, the United States District Court for the Middle District of Florida unsealed the Complaint in the case of Cho et al.
−Removed: United States v.
−Removed: Surgery Partners et al., which we understand to be related to the investigation that gave rise to the CIDs.
−Removed: The Company has been providing information to the government in response to the CIDs and currently has a non-binding agreement in principle with the DOJ on the financial terms of a settlement with the goal of resolving these matters.
−Removed: We previously recorded a litigation-related charge of $46.0 million relating to these matters on the consolidated statements of operations for the year ended December 31, 2018.
−Removed: We continue to believe that this reserve is sufficient to cover a potential resolution with the government relating to these matters, including legal expenses relating to the settlement that have not previously been recorded in our operating expenses.
−Removed: The ultimate timing, amount and/or final terms of any such resolution may differ materially from those anticipated or we may not be able to reach a resolution at all.
−Removed: It is reasonably possible that we will incur additional losses above the amount reserved, but we are not able to estimate such amounts at this time.
−Removed: See Item 1A "Risk Factors" elsewhere in this report under the heading "Risk Factors - Risks Related to Government Regulation - Companies within the health care industry, including us, continue to be the subject of federal and state audits and investigations, including actions for false and other improper claims ."
+Added: The plaintiff has continued to pursue those derivative claims, and the parties to the Delaware Action are engaged in discovery.
Other Litigation.
1 unchanged sentence
In certain of these actions, plaintiffs request payment for damages, including punitive damages, which may not be covered by insurance or may otherwise have a material adverse effect on our business or results of operations.
−Removed: Commitments and Contingencies for additional information regarding pending legal proceedings, which information is incorporated herein by reference.
+Added: "Commitments and Contingencies" for additional information.
Mine Safety Disclosures
1 unchanged sentence
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.