{"id":792350,"date":"2024-12-04T08:35:00","date_gmt":"2024-12-04T13:35:00","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/delaware-court-of-chancery-awards-damages-and-other-relief-to-encompass-health-and-enhabit-for-misconduct-by-april-anthony-other-former-officers-and-private-equity-firms-vistria-group-and-nautic-par\/"},"modified":"2024-12-04T08:35:00","modified_gmt":"2024-12-04T13:35:00","slug":"delaware-court-of-chancery-awards-damages-and-other-relief-to-encompass-health-and-enhabit-for-misconduct-by-april-anthony-other-former-officers-and-private-equity-firms-vistria-group-and-nautic-par","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/delaware-court-of-chancery-awards-damages-and-other-relief-to-encompass-health-and-enhabit-for-misconduct-by-april-anthony-other-former-officers-and-private-equity-firms-vistria-group-and-nautic-par\/","title":{"rendered":"Delaware Court of Chancery Awards Damages and Other Relief to Encompass Health and Enhabit for Misconduct by April Anthony, Other Former Officers, and Private Equity Firms Vistria Group and Nautic Partners"},"content":{"rendered":"<p>        <!--.bwalignc { text-align: center; list-style-position: inside }\n.bwuline { text-decoration: underline }body {font:normal small Arial,Helvetica,sans-serif;color:#000;background-color:#fff;padding:24px;margin:0;} a img {border:0;} h3 {font-size:medium;color:#000;margin:0 0 1em 0; text-align:center;}-->  <\/p>\n<p class=\"bwalignc\"><b>Delaware Court of Chancery Awards Damages and Other Relief to Encompass Health and Enhabit for Misconduct by April Anthony, Other Former Officers, and Private Equity Firms Vistria Group and Nautic Partners<\/b><\/p>\n<p>BIRMINGHAM, Ala. &amp; DALLAS&#8211;(<a href=\"http:\/\/www.businesswire.com\">BUSINESS WIRE<\/a>)&#8211;<br \/>\nOn Monday, Encompass Health and Enhabit won their lawsuit in the Delaware Court of Chancery related to breaches of fiduciary duty by April Anthony, Luke James, and Chris Walker while they served as the senior officers at Encompass Health\u2019s former home health and hospice division, which is now Enhabit. The Court awarded judgment against private equity firms Vistria Group and Nautic Partners and the home health and hospice business now known as VitalCaring Group for aiding and abetting \u201cthe egregious breaches of the duty of loyalty\u201d by Anthony, James, and Walker.<\/p>\n<p>\nThe case was the subject of a 7-day trial in December 2023. After considering \u201cthe damning record presented at trial,\u201d the Court found that, while employed by Encompass Health, Anthony, James, and Walker usurped acquisition opportunities falling within Encompass Health\u2019s line of business, used Encompass Health\u2019s confidential information, and swayed key Encompass Health employees to join them with the promise of equity in the home health and hospice competitor that Anthony now heads. The Court noted that Anthony, James, Walker, and the private equity defendants took \u201cgreat pains\u201d to hide their misconduct, going so far as to secretly exchange diligence materials about acquisition targets for the new venture. The Court determined that VitalCaring Group, Anthony\u2019s new company, is \u201cthe result of this deceit.\u201d<\/p>\n<p>\nIn addition to finding breaches of fiduciary duty by Anthony and the other two former Encompass Health officers, the Court also found that \u201cwith full awareness that their actions were wrong,\u201d Vistria and Nautic and two of their principals, David Schuppan and Christopher Corey, \u201cdrove the fiduciaries\u2019 efforts to covertly siphon opportunities, information, resources, and employees from Encompass.\u201d<\/p>\n<p>\nAs a remedy for these actions, the Court of Chancery imposed a constructive trust entitling Encompass Health and Enhabit to receive 43 percent of VitalCaring Group\u2019s profits, to be paid quarterly, and 43 percent of the exit proceeds if and when VitalCaring Group is sold. The Court also awarded mitigation damages in the amount of approximately $1.62 million, and awarded attorneys\u2019 fees based on the defendants\u2019 bad faith efforts to conceal their misdeeds, which included falsifying records, deleting evidence, and \u201cmanipulating communications through lawyers.\u201d<\/p>\n<p>\nEncompass Health and Enhabit launched the litigation to protect the interests of their stockholders in the wake of the illegal and outrageous conduct of Anthony and the other former officers. Encompass Health and Enhabit believe the broader investing public will also benefit from the Delaware Court of Chancery\u2019s clear message that intentional breaches of fiduciary duty and self-dealing by corporate officers will have severe consequences. Those self-dealing officers and their co-conspirators will not be permitted to benefit themselves at the expense of a corporation\u2019s stockholders.<\/p>\n<p>\nThe defendants in the case who were found liable include Walker, The Vistria Group, Vistria Fund III, Vistria senior partner David Schuppan, Nautic Partners, Nautic Partners IX, Nautic managing director Christopher Corey, and the holding company that owns VitalCaring Group.<\/p>\n<p><b>About Encompass Health<\/b><\/p>\n<p>\nEncompass Health (NYSE: EHC) is the largest owner and operator of rehabilitation hospitals in the United States. With a national footprint that includes 166 hospitals in 38 states and Puerto Rico, the Company provides high-quality, compassionate rehabilitative care for patients recovering from a major injury or illness, using advanced technology and innovative treatments to maximize recovery. Encompass Health is ranked as one of Fortune&#8217;s World\u2019s Most Admired Companies and Becker\u2019s Hospital Review\u2019s 150 Top Places to Work in Healthcare. For more information, visit <a rel=\"nofollow\" href=\"https:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=https%3A%2F%2Fencompasshealth.com%2F&amp;esheet=54161571&amp;newsitemid=20241203092718&amp;lan=en-US&amp;anchor=encompasshealth.com&amp;index=1&amp;md5=31499dbc3f0a8b9f13d202ae09f93940\">encompasshealth.com<\/a>, or follow us on our <a rel=\"nofollow\" href=\"https:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=https%3A%2F%2Fblog.encompasshealth.com%2Fnewsroom%2F&amp;esheet=54161571&amp;newsitemid=20241203092718&amp;lan=en-US&amp;anchor=newsroom&amp;index=2&amp;md5=72d7696c1fe8d26097381a66d53e6c34\">newsroom<\/a>, <a rel=\"nofollow\" href=\"https:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=https%3A%2F%2Ftwitter.com%2Fencompasshlth&amp;esheet=54161571&amp;newsitemid=20241203092718&amp;lan=en-US&amp;anchor=Twitter&amp;index=3&amp;md5=e0a8198d6efddb0a80717661ea6aa161\">Twitter<\/a>, <a rel=\"nofollow\" href=\"https:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.instagram.com%2Fencompasshlth%2F&amp;esheet=54161571&amp;newsitemid=20241203092718&amp;lan=en-US&amp;anchor=Instagram&amp;index=4&amp;md5=62532f4e0f5dde8e0814fa456de5c19b\">Instagram<\/a> and <a rel=\"nofollow\" href=\"https:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.facebook.com%2FEncompassHealth%2F&amp;esheet=54161571&amp;newsitemid=20241203092718&amp;lan=en-US&amp;anchor=Facebook&amp;index=5&amp;md5=a2871c49f0f8e7ab2328fca321b267f9\">Facebook<\/a>.<\/p>\n<p><b>About Enhabit Home Health &amp; Hospice<\/b><\/p>\n<p>\nEnhabit Home Health &amp; Hospice (NYSE: EHAB) is a leading national home health and hospice provider working to expand what\u2019s possible for patient care in the home. Enhabit&#8217;s team of clinicians supports patients and their families where they are most comfortable, with a nationwide footprint spanning 256 home health locations and 112 hospice locations across 34 states. Enhabit leverages advanced technology and compassionate teams to deliver extraordinary patient care. For more information, visit<i \/><a rel=\"nofollow\" href=\"https:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.ehab.com%2F&amp;esheet=54161571&amp;newsitemid=20241203092718&amp;lan=en-US&amp;anchor=ehab.com&amp;index=6&amp;md5=740da48d9ecfe91c9d183ea94cfb21ad\">ehab.com<\/a><i>.<\/i><\/p>\n<p><b>Forward-Looking Statements<\/b><\/p>\n<p><i>Statements contained in this press release which are not historical facts, such as those relating to the likelihood, timing and allocation of any monetary remedies recovered by Encompass Health and Enhabit, are forward-looking statements. In addition, Encompass Health or Enhabit may from time to time make forward-looking public statements concerning the matters described herein. All such estimates, projections, and forward-looking information speak only as of the date made, and neither Encompass nor Enhabit undertakes a duty to publicly update or revise such forward-looking information, whether as a result of new information, future events, or otherwise. Such forward-looking statements are necessarily estimates based upon current information and involve a number of risks and uncertainties. Actual results or events may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which could cause actual results or events to differ materially from those anticipated include, but are not limited to, an appeal of the verdict by the defendants and any related adverse appellate decision; the financial position of the defendants to the extent it may limit the timeliness or ability of the defendants to deliver any monetary remedy awarded, including future profits and exit proceeds, if any, to be delivered through the constructive trust ordered by the court; and other factors which may be identified from time to time in Encompass Health\u2019s or Enhabit\u2019s SEC filings and other public announcements, including in the Forms 10-K for the year ended Dec. 31, 2023 and Forms 10-Q for the quarters ended Mar. 31, 2024, Jun. 30, 2024, and Sept. 30, 2024 for either Encompass Health or Enhabit.<\/i><\/p>\n<p><img decoding=\"async\" alt=\"\" src=\"https:\/\/cts.businesswire.com\/ct\/CT?id=bwnews&amp;sty=20241203092718r1&amp;sid=flmnd&amp;distro=nx&amp;lang=en\" style=\"width:0;height:0\" \/><span class=\"bwct31415\" \/><\/p>\n<p id=\"mmgallerylink\"><span id=\"mmgallerylink-phrase\">View source version on businesswire.com: <\/span><span id=\"mmgallerylink-link\"><a href=\"https:\/\/www.businesswire.com\/news\/home\/20241203092718\/en\/\" rel=\"nofollow\">https:\/\/www.businesswire.com\/news\/home\/20241203092718\/en\/<\/a><\/span><\/p>\n<p><b><span class=\"bwuline\">Encompass Health contacts:<br \/>\n<\/span><br \/>Media:<\/b> Polly Manuel | 205 970-5912<br \/>\n<br \/><a rel=\"nofollow\" href=\"mailto:polly.manuel@encompasshealth.com\">polly.manuel@encompasshealth.com<\/a><\/p>\n<p><b>Investor Relations:<\/b> Mark Miller | 205 970-5860<br \/>\n<br \/><a rel=\"nofollow\" href=\"mailto:mark.miller@encompasshealth.com\">mark.miller@encompasshealth.com<\/a><\/p>\n<p><b><span class=\"bwuline\">Enhabit<\/span><span class=\"bwuline\"> contacts:<br \/>\n<\/span><br \/>Media:<\/b> Erin Volbeda | 972 338-5141<br \/>\n<br \/><a rel=\"nofollow\" href=\"mailto:media@ehab.com\">media@ehab.com<\/a><\/p>\n<p><b>Investor Relations:<\/b> Jobie Williams | 469 860-6061<br \/>\n<br \/><a rel=\"nofollow\" href=\"mailto:investorrelations@ehab.com\">investorrelations@ehab.com<\/a><\/p>\n<p><b>KEYWORDS:<\/b> United States North America Texas Alabama<\/p>\n<p><b>INDUSTRY KEYWORDS:<\/b> Nursing Health Consumer Hospitals Seniors Managed Care General Health<\/p>\n<p><b>MEDIA:<\/b><\/p>\n<table cellpadding=\"3\" cellspacing=\"3\">\n<tr>\n<td><font face=\"Arial\" size=\"2\"><b>Logo<\/b><\/font><\/td>\n<\/tr>\n<tr>\n<td><img decoding=\"async\" src=\"https:\/\/mms.businesswire.com\/media\/20241203092718\/en\/1580450\/3\/Enhabit_HHH_Logo_Vertical_RGB_Positive.jpg\" alt=\"Logo\" \/><\/td>\n<\/tr>\n<tr>\n<td><font face=\"Arial\" size=\"2\"><\/font><\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"<p>Delaware Court of Chancery Awards Damages and Other Relief to Encompass Health and Enhabit for Misconduct by April Anthony, Other Former Officers, and Private Equity Firms Vistria Group and Nautic Partners BIRMINGHAM, Ala. &amp; DALLAS&#8211;(BUSINESS WIRE)&#8211; On Monday, Encompass Health and Enhabit won their lawsuit in the Delaware Court of Chancery related to breaches of fiduciary duty by April Anthony, Luke James, and Chris Walker while they served as the senior officers at Encompass Health\u2019s former home health and hospice division, which is now Enhabit. The Court awarded judgment against private equity firms Vistria Group and Nautic Partners and the home health and hospice business now known as VitalCaring Group for aiding and abetting \u201cthe egregious breaches of the duty &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.marketnewsdesk.com\/index.php\/delaware-court-of-chancery-awards-damages-and-other-relief-to-encompass-health-and-enhabit-for-misconduct-by-april-anthony-other-former-officers-and-private-equity-firms-vistria-group-and-nautic-par\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Delaware Court of Chancery Awards Damages and Other Relief to Encompass Health and Enhabit for Misconduct by April Anthony, Other Former Officers, and Private Equity Firms Vistria Group and Nautic Partners&#8221;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-792350","post","type-post","status-publish","format-standard","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Delaware Court of Chancery Awards Damages and Other Relief to Encompass Health and Enhabit for Misconduct by April Anthony, Other Former Officers, and Private Equity Firms Vistria Group and Nautic Partners - Market Newsdesk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.marketnewsdesk.com\/index.php\/delaware-court-of-chancery-awards-damages-and-other-relief-to-encompass-health-and-enhabit-for-misconduct-by-april-anthony-other-former-officers-and-private-equity-firms-vistria-group-and-nautic-par\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Delaware Court of Chancery Awards Damages and Other Relief to Encompass Health and Enhabit for Misconduct by April Anthony, Other Former Officers, and Private Equity Firms Vistria Group and Nautic Partners - Market Newsdesk\" \/>\n<meta property=\"og:description\" content=\"Delaware Court of Chancery Awards Damages and Other Relief to Encompass Health and Enhabit for Misconduct by April Anthony, Other Former Officers, and Private Equity Firms Vistria Group and Nautic Partners BIRMINGHAM, Ala. &amp; DALLAS&#8211;(BUSINESS WIRE)&#8211; On Monday, Encompass Health and Enhabit won their lawsuit in the Delaware Court of Chancery related to breaches of fiduciary duty by April Anthony, Luke James, and Chris Walker while they served as the senior officers at Encompass Health\u2019s former home health and hospice division, which is now Enhabit. The Court awarded judgment against private equity firms Vistria Group and Nautic Partners and the home health and hospice business now known as VitalCaring Group for aiding and abetting \u201cthe egregious breaches of the duty &hellip; Continue reading &quot;Delaware Court of Chancery Awards Damages and Other Relief to Encompass Health and Enhabit for Misconduct by April Anthony, Other Former Officers, and Private Equity Firms Vistria Group and Nautic Partners&quot;\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.marketnewsdesk.com\/index.php\/delaware-court-of-chancery-awards-damages-and-other-relief-to-encompass-health-and-enhabit-for-misconduct-by-april-anthony-other-former-officers-and-private-equity-firms-vistria-group-and-nautic-par\/\" \/>\n<meta property=\"og:site_name\" content=\"Market Newsdesk\" \/>\n<meta property=\"article:published_time\" content=\"2024-12-04T13:35:00+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cts.businesswire.com\/ct\/CT?id=bwnews&amp;sty=20241203092718r1&amp;sid=flmnd&amp;distro=nx&amp;lang=en\" \/>\n<meta name=\"author\" content=\"Newsdesk\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Newsdesk\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/delaware-court-of-chancery-awards-damages-and-other-relief-to-encompass-health-and-enhabit-for-misconduct-by-april-anthony-other-former-officers-and-private-equity-firms-vistria-group-and-nautic-par\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/delaware-court-of-chancery-awards-damages-and-other-relief-to-encompass-health-and-enhabit-for-misconduct-by-april-anthony-other-former-officers-and-private-equity-firms-vistria-group-and-nautic-par\\\/\"},\"author\":{\"name\":\"Newsdesk\",\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/#\\\/schema\\\/person\\\/482f27a394d4fda80ecb5499e519d979\"},\"headline\":\"Delaware Court of Chancery Awards Damages and Other Relief to Encompass Health and Enhabit for Misconduct by April Anthony, Other Former Officers, and Private Equity Firms Vistria Group and Nautic Partners\",\"datePublished\":\"2024-12-04T13:35:00+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/delaware-court-of-chancery-awards-damages-and-other-relief-to-encompass-health-and-enhabit-for-misconduct-by-april-anthony-other-former-officers-and-private-equity-firms-vistria-group-and-nautic-par\\\/\"},\"wordCount\":1075,\"image\":{\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/delaware-court-of-chancery-awards-damages-and-other-relief-to-encompass-health-and-enhabit-for-misconduct-by-april-anthony-other-former-officers-and-private-equity-firms-vistria-group-and-nautic-par\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/cts.businesswire.com\\\/ct\\\/CT?id=bwnews&amp;sty=20241203092718r1&amp;sid=flmnd&amp;distro=nx&amp;lang=en\",\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/delaware-court-of-chancery-awards-damages-and-other-relief-to-encompass-health-and-enhabit-for-misconduct-by-april-anthony-other-former-officers-and-private-equity-firms-vistria-group-and-nautic-par\\\/\",\"url\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/delaware-court-of-chancery-awards-damages-and-other-relief-to-encompass-health-and-enhabit-for-misconduct-by-april-anthony-other-former-officers-and-private-equity-firms-vistria-group-and-nautic-par\\\/\",\"name\":\"Delaware Court of Chancery Awards Damages and Other Relief to Encompass Health and Enhabit for Misconduct by April Anthony, Other Former Officers, and Private Equity Firms Vistria Group and Nautic Partners - 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