The stipulation did not detail the adjustments reducing the purchase price by $23.5 million. With the $411.5 million allocated, the prejudgment remedy action brought by Prospect Medical, consolidated with Yale New Haven Health’s declaratory judgment suit, is now moot.
Yale Hospital $411M Judgment : Legal Actions and Allegations
Yale New Haven Health initiated legal action over the asset purchase agreement on May 3, claiming that Prospect Medical’s “irresponsible financial practices, severe neglect and general mismanagement” breached the terms of their agreement. In response, Prospect Medical filed for a prejudgment remedy in June, asserting no breach on its part and urging the court to enforce the original terms.
Following Prospect Medical’s application, the parties agreed to consolidate their cases. The court, during a June 28 status conference, indicated readiness to begin a trial on Yale New Haven Health’s declaratory judgment claims on Dec. 9.
Yale Hospital $411M Judgment : Expedited Resolution Efforts
A Yale New Haven Health representative stated Monday that the $411.5 million was set aside to “expedite the resolution” of its claims against Prospect Medical. Counsel for Prospect Medical did not immediately respond to requests for comment.
Yale Hospital $411M Judgment : Legal Representation
Yale New Haven Health is represented by Kim E. Rinehart of Wiggin and Dana LLP and Daniel Slifkin and Michael A. Paskin of Cravath Swaine & Moore LLP. Prospect Medical is represented by Amy P. Blume of Bershtein Volpe & McKeon PC and Robert Friedman and Danielle Vrabie of Sheppard Mullin Richter & Hampton.
