Appeals Court Keeps Shareholder Suit Alive
A shareholder lawsuit against current and former executives of HCA Inc., the nation’s largest for-profit hospital company, was given new life by a federal appeals court panel.
Shareholders in the class-action suit alleged in 1997 that they were defrauded by management of the Nashville-based company, then called Columbia/HCA Healthcare Corp., which saw stock prices plunge after federal agents raided offices and hospitals amid a wide-ranging fraud investigation.
Two years ago, a lower court dismissed the suit and prohibited the shareholders from amending their complaint. But the U.S. 6th Circuit Court of Appeals decided that there was no evidence that the plaintiffs acted in bad faith and allowed them to file again.
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