#corporate-misconduct

#corporate-misconduct

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 Tenth Circuit's extreme deference to arbitrators has nullified meaningful judicial review, as emphasized in the amicus brief by Lift Our Voices. The brief cites the court's admissions of powerlessness, claiming federal courts "do not have discretion," "do not have power," and "cannot set aside an arbitration award based on legal error." This language reflects a worrying abdication of judicial authority outlined in Article III when the Federal Arbitration Act was enacted.