Health Executives Sued by Insurer Over Judgment on Debt Deal

Two health-care executives were sued by an insurer over coverage for a $1.77 million judgment in litigation accusing them of making misrepresentations tied to a debt agreement.

Most of the judgment amount is excluded from a liability policy issued by Associated Industries Insurance Co., the carrier said in a complaint filed Wednesday in the US District Court for the Western District of North Carolina.

The underlying suit was brought by HE Inc. against Stephen Woody and David Fann, who served as the CEO and president, respectively, of Avadim Health Inc. Avadim had acquired a patent from HE for a topical ...