Ascension, TowerBrook Have $45 Million Deal in R1 RCM Stock Case

Ascension Health Alliance and TowerBrook Capital Partners LP will shoulder most of a $45.4 million settlement ending shareholder litigation over their deal to unlock long-term investments in medical billing company R1 RCM Inc.

The agreement—which includes payments of $3.6 million by R1 board members and $2 million by New Mountain Capital affiliates—was filed in Delaware’s Chancery Court, where a group of pension funds brought the consolidated case in 2021. Ascension and TowerBrook will pay a combined $39.8 million, according to the Sept. 29 court filing.

Because the lawsuit involved shareholder derivative claims—which are technically brought on a company’s behalf against ...