Bloomberg Law
Free Newsletter Sign Up
Login
BROWSE
Bloomberg Law
Welcome
Login
Advanced Search Go
Free Newsletter Sign Up

CarePoint Backers Beat Claim They Funneled Cash to Clover Health

July 29, 2022, 9:16 PM

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 ...