By Dean Seal
VitalCaring Group's private equity backers may appeal a judge's ruling that the home-health and hospice company has to split profits with Encompass Health and Enhabit because it was formed illicitly by former Encompass senior officers.
The Vistria Group and Nautic Partners said in a joint statement that they are considering "all available options," including an appeal, related to the Delaware Court of Chancery's decision to award Encompass and Enhabit 43% of VitalCaring Group's profits.
The court said Thursday that April Anthony, Luke James and Chris Walker breached their fiduciary duty of loyalty to Encompass when they were senior officers at its former home health and hospice division, which became Enhabit after a 2022 spinoff.
The trio was found to have usurped Encompass' acquisition opportunities, used its confidential information and poached its key employees with the promise of equity in VitalCaring Group, the competitor that Anthony now leads.
The judge further ruled that Vistria Group and Nautic Partners were aware of and aided the misconduct of the three former officers.
The private equity firms said in a statement on Thursday evening that they are still reviewing the court's decision. "Nautic and The Vistria Group are committed to the highest standards of integrity and compliance across our respective operations and those of our portfolio companies," they said.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
December 06, 2024 08:01 ET (13:01 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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