Bloomberg Law
July 29, 2022, 9:16 PM

CarePoint Backers Beat Claim They Funneled Cash to Clover Health

Mike Leonard
Mike Leonard
Legal Reporter

Founders of New Jersey’s CarePoint hospital system on Friday dodged claims in Delaware that they bilked it out of more than $150 million in bogus fees and reached intentionally bad deals with Clover Health Investment Corp., an insurer one of them started.

Chancellor Kathaleen St. Jude McCormick narrowed the complex case, throwing out counterclaims by affiliates of nursing chain Alaris Health. The ruling came two years after McCormick let the CarePoint founders move forward with claims that Alaris’ CEO breached their first refusal rights by maneuvering to turn a CarePoint hospital into a nursing home.

McCormick, writing for Delaware’s Chancery ...