Summary Judgment of Earn-out Litigation for Change Healthcare

Client Type: Private Company

We obtained summary judgment on behalf of Change Healthcare and related entities in federal court litigation in Seattle stemming from Change Healthcare’s acquisition of a start-up business in the healthcare technology industry where the stock purchase agreement had contingent earn-out provisions. The former shareholders of the start-up business alleged, among other claims, breach of the implied covenant of good faith and fair dealing and breach of contract under Delaware law. Representative matters include: Lilly v. Envoy, LLC, No. C15-0742RSM, 2016 WL 7375271 (W.D. Wash. Dec. 20, 2016).

Change Healthcare (formerly NYSE: EM) is a leading provider of software and analytics, network solutions and technology-enabled services that optimize communications, payments and actionable insights designed to enable smarter healthcare.

We obtained summary judgment on behalf of Change Healthcare and related entities in federal court litigation in Seattle stemming from Change Healthcare’s acquisition of a start-up business in the healthcare technology industry where the stock purchase agreement had contingent earn-out provisions. The former shareholders of the start-up business alleged, among other claims, breach of the implied covenant of good faith and fair dealing and breach of contract under Delaware law. Representative matters include: Lilly v. Envoy, LLC, No. C15-0742RSM, 2016 WL 7375271 (W.D. Wash. Dec. 20, 2016).

Change Healthcare (formerly NYSE: EM) is a leading provider of software and analytics, network solutions and technology-enabled services that optimize communications, payments and actionable insights designed to enable smarter healthcare.