Court rules against former Encompass Health officers in lawsuit

Court rules against former Encompass Health officers in lawsuit
HomeCare, Dallas, TX and Birmingham, AL; 12/9/24 
The Delaware Court of Chancery ruled in the lawsuit against Encompass Health, a national home health and hospice provider, and Enhabit Home Health and Hospice, an owner and operator of rehabilitation hospitals. The lawsuit related to breaches of fiduciary duty by former company executives within Emcompass Health's former home health and hospice division, which is now Enhabit Home Health and Hospice. The court awarded judgment against VitalCaring Group, a home health and hospice business, as well as the private equity firms Vistria Group and Nautic Partners for aiding and abetting “the egregious breaches of the duty of loyalty” by former Encompass Health CEO April Anthony, former chief strategy officer Luke James and former chief financial officer Chris Walker. The court found that while employed by Encompass Health, Anthony, James and Walker usurped acquisition opportunities falling within Encompass Health’s line of business, used Encompass Health’s 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, VitalCaring Group.