We served as lead counsel for Envision and 23 individual defendants in a putative class action alleging violations of Sections 10(b), 20A and 20(a) of the Securities Exchange Act of 1934 and Sections 11, 12 and 15 of the Securities Act of 1933. In its original complaint, the plaintiffs claimed billions of dollars in damages alleging that the defendants made materially false and misleading statements and omissions concerning the company’s contracts and out-of-network billing. We were successful in getting several key allegations dismissed early in the case, including allegations related to Envision’s purported upcoding, improper increases in hospital admission rates, Envision’s transition to in-network status, and due diligence on certain 2014-2015 contracts. This case involved a massive amount of discovery, leading to over 50 depositions and more than 3.2 million pages of documents produced by both parties and non-parties. In May 2023, Envision entered Chapter 11 proceedings. We were successful in getting the securities litigation stayed to make an effort to resolve the litigation through settlement. The settlement, which was fully covered by insurance proceeds, was finalized for $177.5 million. In re Envision Healthcare Corporation Securities Litigation, Civil Action No. 3:17-cv-01112 (M.D. Tenn.).
Representation of Envision Healthcare Corporation and Current and Former Officers and Directors
Representation of Envision Healthcare Corporation and Current and Former Officers and Directors
We served as lead counsel for Envision and 23 individual defendants in a putative class action alleging violations of Sections 10(b), 20A and 20(a) of the Securities Exchange Act of 1934 and Sections 11, 12 and 15 of the Securities Act of 1933. In its original complaint, the plaintiffs claimed billions of dollars in damages alleging that the defendants made materially false and misleading statements and omissions concerning the company’s contracts and out-of-network billing. We were successful in getting several key allegations dismissed early in the case, including allegations related to Envision’s purported upcoding, improper increases in hospital admission rates, Envision’s transition to in-network status, and due diligence on certain 2014-2015 contracts. This case involved a massive amount of discovery, leading to over 50 depositions and more than 3.2 million pages of documents produced by both parties and non-parties. In May 2023, Envision entered Chapter 11 proceedings. We were successful in getting the securities litigation stayed to make an effort to resolve the litigation through settlement. The settlement, which was fully covered by insurance proceeds, was finalized for $177.5 million. In re Envision Healthcare Corporation Securities Litigation, Civil Action No. 3:17-cv-01112 (M.D. Tenn.).