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.

Micropolis, a Chatsworth disk drive maker, said it signed a three-year, $5-million agreement to sell high-capacity hard disk drives to Prime Computer, a Natick, Mass., manufacturer of small computers.