Steward Health Care System has sold its 31 hospitals in the U.S., including five in South Florida, due to bankruptcy. The company has filed a lawsuit against its former CEO, Dr. Ralph de La Torre, and other executives for allegations of misconduct. Steward accuses them of making self-serving business decisions that harmed both the company and its patients, including using funds for personal luxury purchases. The lawsuit seeks to classify certain transactions as fraudulent, notably the purchase of five Miami-area hospitals for $1.1 billion, which was deemed overpriced. Steward's attorneys demand repayment from de La Torre and others involved.
Steward Health Care System filed a lawsuit against its former CEO and other executives, alleging they engaged in misconduct that led to the company's bankruptcy. Steward claims former CEO Dr. Ralph de La Torre personally benefited from his actions, including using operational funds for luxury purchases, which contributed to the collapse of the company.
The lawsuit names several executives and board members along with Dr. de La Torre, accusing them of making deals that prioritized personal gain over the company's welfare, resulting in detrimental impacts on hospitals and patients.
Steward attorneys argue that the misconduct involved transactions made between April 2020 and November 2022 and they want the court to declare these transactions fraudulent and enforce repayment.
One key transaction under scrutiny involves the $1.1 billion purchase of five Miami-area hospitals, which the lawsuit claims was made at an inflated price despite the initial valuation being $895 million.
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