Encompass Health (EHC) and Enhabit (EHAB) said Wednesday the Delaware Court of Chancery awarded them damages and other remedies related to a lawsuit against former executives and private equity firms over alleged misconduct.

The companies said the court found that former senior officers April Anthony, Luke James, and Chris Walker breached fiduciary duty, aided by Vistria Group, Nautic Partners, and others, to benefit a competitor, VitalCaring Group.

The court said the former senior officers misused confidential information, diverted business opportunities, and recruited employees from Encompass Health while allegedly hiding their actions, according to the companies.

Encompass and Enhabit said that remedies include a 43% share of VitalCaring's profits, 43% of the exit proceeds if and when VitalCaring is sold, about $1.6 million in mitigation damages, and attorneys' fees.

Vistria Group, Nautic Partners and VitalCaring Group did not immediately respond to requests for comment from MT Newswires.

Shares of Enhabit were up 2.1% in early trading Wednesday while Encompass stock gained 1.2%.