Apria Settles Suit Over Sour Deal

Apria Healthcare Group Inc. said Friday that it agreed to settle a recent lawsuit alleging that a New York investor group had reneged on a deal to put $172.2 million into the Costa Mesa-based home health-care company. Apria said the group, led by Joseph Littlejohn & Levy, will not provide the infusion for the struggling company. As part of the original deal, the investors would have obtained a 26% stake in Apria. The company had sought an infusion of capital as part of an attempt to return to profitability after posting a $272.6 million loss for 1997, including a charge for goodwill. The lawsuit said Littlejohn wrongfully attempted to change terms of the agreement. As part of the settlement, neither party will pay any financial consideration. The company is now free to consider other offers or financing alternatives.