Deals & Corporate Governance
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June 07, 2024
Yale Hospital Sued For Seeking To Exit $435M Purchase Deal
California-based Prospect Medical Holdings Inc. has sued Yale New Haven Health for seeking to back out of a $435 million acquisition of three financially distressed Connecticut hospitals, accusing the state's largest hospital of breach of contract and wrongfully leaking a prior lawsuit to the press.
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June 07, 2024
Acorda Therapeutics Gets OK On $185M Ch. 11 Sale To Merz
Drugmaker Acorda Therapeutics Inc. received a New York bankruptcy judge's approval Friday to complete a $185 million sale of its assets to a fellow pharmaceutical company, allowing Acorda to move ahead with a Chapter 11 plan to wind down its business.
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June 07, 2024
Taxation With Representation: Vinson, Latham, Ropes & Gray
In this Week's Taxation with Representation, Waste Management buys Stericycle, Becton Dickinson pays $4.2 billion for Edwards Lifesciences' critical care products unit, Aquiline Capital Partners raises over $3.4 billion in fund capital, and Bain Capital buys PowerSchool Holdings.
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June 06, 2024
Health Co. CEO Sold Stock Amid Souring Cigna Deal, Jury Told
A stock analyst told California federal jurors Thursday he noticed in disclosure forms that the founder of healthcare company Ontrak Inc. was starting to sell company shares a few weeks before Cigna announced it was terminating its $90 million contract with the company.
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June 06, 2024
Pharma Co. Misled Investors On Seizure Drug Trial, Suit Says
Marinus Pharmaceuticals has been hit with a proposed shareholder class action alleging that the company understated the risks of an epilepsy drug trial and did not warn investors that trial enrollment would be suspended when it failed to meet certain criteria.
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June 06, 2024
North Carolina AG Narrows Target In Hospital Contract Suit
The North Carolina Attorney General's office has agreed to drop for-profit hospital network HCA Management Services from a lawsuit over allegedly unsafe and unsanitary conditions at its Asheville hospital, although an affiliate remains as a defendant, according to a joint stipulation in the state Business Court.
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June 05, 2024
AI Co., Biotech Prep IPOs Worth $602M As Novelis Delays
Healthcare data artificial intelligence platform Tempus AI and Australian biotech Telix Pharmaceuticals on Wednesday unveiled plans for initial public offerings that will aim to raise a combined total of approximately $602 million, while sustainable aluminum solutions provider Novelis, a day prior, postponed IPO plans due to market conditions.
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June 05, 2024
FTC Can't Pause Novant's $320M Bid To Buy NC Hospitals
The Federal Trade Commission on Wednesday lost its bid to block Novant Health from buying two local hospitals in North Carolina for $320 million while it conducts an in-house review, with a federal judge reasoning that competition would actually fare better if the merger advanced.
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June 04, 2024
Ontrak CEO Shed $20M In Stock With Insider Info, Jury Hears
Ontrak Inc.'s founder rushed to dump over $20 million of the healthcare company's stock using insider information about a souring relationship with its biggest client, Cigna, helping him avoid $12 million in losses, prosecutors told California federal jurors Tuesday in a first-of-its-kind securities fraud trial.
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June 04, 2024
Chinese Fund Asks To Nix Doc Bid In $830M Transaction Row
A Chinese healthcare investment fund has asked a New York federal court to toss a Hong Kong medical fund's subpoena request seeking information in a foreign case stemming from a stymied $830 million transaction, saying the discovery bid isn't allowed for the private arbitration.
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July 03, 2024
The State Of The Retail Industry's Healthcare Investments
Amazon and Walgreens separately announced changes to their healthcare offerings, revealing the growing divide between retail companies as they grapple with a complicated business. Law360 Healthcare Authority looks at major retailers' recent healthcare ventures and where they stand now.
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June 03, 2024
Judge Says It's Time For DIP Deal For Steward Healthcare
A Texas bankruptcy judge on Monday gave Steward Health Care permission to offer a commitment fee to induce a lender to provide it with the financing to see the hospital chain through its Chapter 11 case, while saying the company needs that final commitment soon.
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June 03, 2024
Taxes Take Center Stage In Pot Industry Amid Fed. Policy Shift
The federal government's move to loosen restrictions on cannabis is expected to trigger a wave of mergers and acquisitions structured as asset deals in the industry, especially among struggling retail operations willing to restructure in order to raise profits and lower their tax liabilities.
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June 03, 2024
Ropes & Gray Guides Becton On $4.2B Edwards Unit Buy
Ropes & Gray LLP is guiding Becton Dickinson and Co. on a deal that will see the medical technology company pay $4.2 billion for Edwards Lifesciences' critical care product group, which focuses on patient monitoring using artificial intelligence, the companies said Monday.
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May 31, 2024
Caremark Cut Loose From CVS Price-Gouging Case
A Rhode Island federal judge on Thursday dismissed Caremark from long-running litigation alleging CVS schemed with pharmacy benefit managers to overcharge insured health plans for generic drugs, finding Caremark's contracts with the funds have enforceable arbitration clauses.
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May 31, 2024
Healthcare REIT Closes $120M Loan For 8-Property Portfolio
Diversified Healthcare Trust has finalized a deal for a 10-year, interest-only $120 million mortgage loan that's secured by eight of its properties located in seven states, the healthcare-focused real estate investment trust announced.
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May 31, 2024
Gov't Contracts Of The Month: Health, Spacecraft And Bombs
The U.S. Defense Health Agency unveiled contracts worth tens of billions of dollars in May, including a scrutinized $43 billion medical staffing vehicle, and the National Aeronautics and Space Administration added $6 billion to a spacecraft deal. Here, Law360 looks at some of the most noteworthy government contracts over the last month.
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May 30, 2024
Rite Aid Ch. 11 Timeline Extended To Allow More Plan Review
A New Jersey judge on Thursday lengthened the timeline for Rite Aid to seek an exit from its Chapter 11 bankruptcy, pushing the confirmation hearing date out by seven days after insurers and others said the company's schedule would not provide enough time to review its restructuring plan.
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May 30, 2024
Cue Health Spiraled Into Ch. 7 After FDA Nixed COVID Tests
Medical-test maker Cue Health's promise of "lab-quality" COVID-19 tests fell apart after federal regulators rang the alarm that its tests were less reliable than advertised, leading the company to file for Chapter 7 liquidation in Delaware bankruptcy court.
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May 30, 2024
FTC, Novant Ask To Delay In-House Trial On Merger Challenge
The Federal Trade Commission and Novant Health have asked to postpone an upcoming administrative hearing over the nonprofit's proposed purchase of two North Carolina hospitals, a purchase that regulators are concerned will dampen competition in the region, according to a notice filed in federal court.
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May 29, 2024
Fla. Medicare Companies Get Class Cert. In Suit Against USAA
A Florida state court judge granted certification to a class of Medicare-contracted businesses suing USAA Casualty Insurance Co. over allegations the insurer withheld policy information and intentionally passed its obligation to pay automobile injury claims downstream to other companies, according to attorneys representing the group of businesses.
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May 28, 2024
J&J To Pay $1.25B For Global Rights To Eczema Treatment
Johnson & Johnson has agreed to buy the rights to an experimental treatment for eczema from Baker McKenzie-advised Numab Therapeutics for approximately $1.25 billion, the companies announced on Tuesday.
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May 28, 2024
Medical Test Maker To Liquidate After FDA Slams COVID Kits
Medical test maker Cue Health filed for Chapter 7 liquidation in Delaware bankruptcy court Tuesday with more than $50 million in debt, two weeks after federal regulators warned customers to throw out its COVID-19 tests due to a higher risk of false results.
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May 28, 2024
DC Circ. Decision May Lead To Tighter 340B Pharma Contracts
A D.C. Circuit decision last week holding that the federal 340B drug pricing program doesn't bar drugmakers from imposing contractual conditions on contract pharmacies could embolden them to impose tougher restrictions as they try to ease the program's financial burden.
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May 24, 2024
Healthcare REIT Nabs $800M Despite Tenant Turbulence
Medical Properties Trust Inc. announced Friday that the real estate investment trust has secured a £631 million ($804 million) financing from a group of investors led by real estate investment firm Song Capital, in a deal led by Goodwin Procter LLP and Slaughter and May.
Expert Analysis
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Firm Tips For Helping New Lawyers Succeed Post-Pandemic
Ten steps can help firms significantly enhance the experience of attorneys who started their careers in the coronavirus pandemic era, including facilitating opportunities for cross-firm connection, which can ultimately help build momentum for business development, says Lana Manganiello at Equinox Strategy Partners.
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Fla. Foreign Real Estate Law Brings Broad Investment Risks
Last month, Florida became the latest state to enact legislation prohibiting Chinese investors from acquiring certain interests in real property, introducing significant legal uncertainty and consequences for real estate stakeholders and the private equity industry, say attorneys at Simpson Thacher.
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Tackling Judge-Shopping Concerns While Honoring Localism
As the debate continues over judge-shopping and case assignments in federal court, policymakers should look to a hybrid model that preserves the benefits of localism for those cases that warrant it, while preventing the appearance of judge-shopping for cases of a more national or widespread character, says Joshua Sohn at the U.S. Department of Justice.
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How Attorneys Can Help Combat Anti-Asian Hate
Amid an exponential increase in violence against Asian American and Pacific Islander communities, unique obstacles stand in the way of accountability and justice — but lawyers can effect powerful change by raising awareness, offering legal representation, advocating for victims’ rights and more, say attorneys at Gibson Dunn.
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Congress Needs To Enact A Federal Anti-SLAPP Statute
Although many states have passed statutes meant to prevent individuals or entities from filing strategic lawsuits against public participation, other states have not, so it's time for Congress to enact a federal statute to ensure that free speech and petitioning rights are uniformly protected nationwide in federal court, say attorneys at Skadden.
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Takeaways From New Fla. Pharmacy Benefit Manager Rules
A recently passed Florida law imposes several new requirements on pharmacy benefit managers, necessitating practical considerations that range from potential license application delays to possible trade secret exposure, say Thomas Range and Bruce Platt at Akerman.
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Looking For Plausibility In FTC's Amgen Merger Challenge
The Federal Trade Commission is seeking to block Amgen's acquisition of Horizon, alleging that, if consummated, the deal would violate Section 7 of the Clayton Act — but this may be the first merger complaint in a generation that could be dismissed for failing to state a claim, say William MacLeod and David Evans at Kelley Drye.
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Some Client Speculations On AI And The Law Firm Biz Model
Generative artificial intelligence technologies will put pressure on the business of law as it is structured currently, but clients may end up with more price certainty for legal services, and lawyers may spend more time being lawyers, says Jonathan Cole at Melody Capital.
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A Lawyer's Guide To Approaching Digital Assets In Discovery
The booming growth of cryptocurrency and non-fungible tokens has made digital assets relevant in many legal disputes but also poses several challenges for discovery, so lawyers must garner an understanding of the technology behind these assets, the way they function, and how they're held, says Brett Sager at Ehrenstein Sager.
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High Court's Ethics Statement Places Justices Above The Law
The U.S. Supreme Court justices' disappointing statement on the court's ethics principles and practices reveals that not only are they satisfied with a status quo in which they are bound by fewer ethics rules than other federal judges, but also that they've twisted the few rules that do apply to them, says David Janovsky at the Project on Government Oversight.
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Time For Law Schools To Rethink Unsung Role Of Adjuncts
As law schools prepare for the fall 2023 semester, administrators should reevaluate the role of the underappreciated, indispensable adjunct, and consider 16 concrete actions to improve the adjuncts' teaching experience, overall happiness and feeling of belonging, say T. Markus Funk at Perkins Coie, Andrew Boutros at Dechert and Eugene Volokh at UCLA.
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Tips For In-House Legal Leaders In A Challenging Economy
Amid today's economic and geopolitical uncertainty, in-house legal teams are running lean and facing increased scrutiny and unique issues, but can step up and find innovative ways to manage outcomes and capitalize on good business opportunities, says Tim Parilla at LinkSquares.
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What Associates Need To Know Before Switching Law Firms
Excerpt from Practical Guidance
The days of staying at the same firm for the duration of one's career are mostly a thing of the past as lateral moves by lawyers are commonplace, but there are several obstacles that associates should consider before making a move, say attorneys at HWG.