Confidential Settlement Reached in Texas Health Resources Fraud Lawsuit

Attorneys with the Dallas litigation boutique Aldous \ Walker have secured a confidential settlement in a lawsuit against Texas Health Resources and LHP Hospital Group based on fraud allegations stemming from the companies’ 2010 acquisition of Wilson N. Jones Memorial Hospital in Sherman, Texas. “I am happy that we were able to hold the defendants accountable and send a message that you cannot hurt communities like THR did and abandon them without consequences,” says attorney Charla Aldous of Aldous \ Walker, lead counsel for the foundation. And I am especially proud that the proceeds from this agreement will go to the Wilson N. Jones Community Foundation to help provide health care to the indigent in Grayson County. The civil lawsuit filed in January 2015 on behalf of the hospital’s foundation claimed that Arlington, Texas-based THR and Plano, Texas-based LHP induced the WNJ board of trustees to sell the hospital to them six years ago even though there were higher offers from other potential buyers. The sale was predicated on THR and LHP committing $25 million for capital improvements within five years, in addition to the companies’ promising not to sell the hospital to any outside group for 10 years. However, Ms. Aldous says the capital improvements never reached the $25 million mark. THR and LHP also notified the foundation board that they intended to sell the hospital in September 2014 instead of honoring the previously agreed 10-year ownership pledge. The WNJ Foundation owned the hospital since 1914 until its sale to THR.

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