Judge Grows Impatient Over Injury Claim Deadlock
Even as the settlement offered a glimmer of stability, Judge Jernigan voiced frustration with slow progress on hundreds of personal injury claims pending against Prospect and its affiliates. The company had recently offered to lift its bankruptcy stay, allowing the lawsuits to move forward after hitting a stalemate with its excess insurers.
During Friday’s hearing, Vincent P. Slusher, special conflicts counsel for Prospect, said insurers had finally presented an offer that could revive negotiations toward a funded settlement pool for victims—though details remain under wraps.
“I’m pleased, but I’m still frustrated,” Judge Jernigan warned. “It’s time to fish or cut bait on this.” She added that if a funded trust isn’t finalized by Oct. 24, she may allow “69 people, or 300 people, or whatever it is, to go forth” with their claims.
Legal Teams Cement the Resolution
Prospect Medical Holdings is represented by a team from Sidley Austin LLP—Thomas R. Califano, Rakhee V. Patel, Maegan Quejada, William E. Curtin, Patrick Venter, and Anne G. Wallice—alongside Vincent P. Slusher of The Law Office of Vincent P. Slusher.
The Prospect Medical $45M Yale Health Deal not only ends a fierce legal standoff but also resets the stage for one of healthcare’s most watched bankruptcies—a test of how resilience, strategy, and timing can rebuild even a crumbling medical empire.
