DaVita Can’t Ditch Shareholder Suit Over Hidden Donations

April 26, 2019, 5:05 PM

DaVita Inc. must face a shareholder derivative suit over allegations it hid donations to a kidney charity that worked to keep patients dependent on dialysis, a federal judge said April 25.

The health-care company’s investors sufficiently alleged that issuing a demand to DaVita’s board before filing suit would have been futile, allowing them to skip that step, the U.S. District Court for the District of Delaware said.

DaVita, which primarily provides dialysis services, allegedly secretly donated about $100 million per year to the American Kidney Foundation. The foundation dedicates most of its budget to helping dialysis patients pay ...

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