Certain Tehum Creditors Can Pursue Successor Liability Claims

Tehum Care Services Inc.'s personal injury and wrongful death creditors who didn’t receive an opt out form can’t be bound by third-party releases under the prison health-care company’s bankruptcy plan confirmation.

Nonbankrupt Corizon Health Inc. affiliate YesCare Corp. sought to enjoin certain parties, who are mostly current and former prisoners, from suing nonbankrupt entities for successor liabilities claims.

A claimant who received the form and didn’t opt out of the third-party releases by checking a required box is considered to have consented, according to a Thursday order from the US Bankruptcy Court for the Southern District of Texas, granting in ...