Community Health Systems, Inc. (NYSE:CYH)

Serving as co-lead counsel against the officers and directors of Community Health, Inc. alleging that the fiduciaries systematically steered patients into medically unnecessary inpatient admissions when they should have been treated as outpatient, Robbins Arroyo LLP was instrumental in obtaining what is believed to be the largest shareholder derivative recovery in the Sixth Circuit to date. After five years of contentious litigation and discovery, defendants agreed to settle the case, which included a $60 million cash payment to Community Health and the implementation of extensive corporate governance reforms, including board modifications to ensure director independence, improved internal disclosure policies to allow for the confidential reporting of suspected violations of healthcare laws, and the establishment of a Trading Compliance Committee to ensure compliance with Community Health’s insider stock trading policy, among others. 

In re Community Health Systems, Inc. Shareholder Derivative Litig, No. 3:11-cv-00489 (M.D. Tenn. Jan. 20, 2017).

 

[ Return to Noteworthy Cases ]