Nu-Med Settles Lawsuit Over Canceled Merger
Nu-Med has agreed to pay “less than $400,000” to Community Care Systems of Boston to settle a suit stemming from a canceled merger deal.
The Encino-based hospital chain announced plans in April to buy Community Care, a chain of seven psychiatric clinics in New England, in a cash and stock deal worth about $35 million. Last month, however, Nu-Med pulled out of the deal.
Community Care responded by filing a $119-million suit in November in U. S. District Court in Boston, claiming breach of contract. That suit and a countersuit by Nu-Med were dismissed as a result of the settlement, said William N. Hartauer, Nu-Med’s president.
Nu-Med also announced it has acquired Parkside Hospital in Wimbledon, England, a 72-bed general care facility, for an undisclosed amount of cash.
Nu-Med owns and operates 15 general care hospitals in the United States and two in England. It also owns three psychiatric hospitals in the United States.
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