Health Law Keyed to Furrow
In re Caremark International Inc. Derivative Litigation
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As part of its patient care business, Caremark International, Inc. (Plaintiff) provided alternative site health care services. Plaintiff had taken many measures to assure compliance with the antikickback provisions of the Medicare fraud and abuse law. When two federal grand juries indicated Plaintiff and individuals for violations of the antikickback laws, a derivative suit was filed alleging Caremark directors (Defendant) breached their duty of care by failing to adequately supervise Plaintiff's employees. A proposed settlement was reached to recover the corporation's losses against the individuals who make up its board of directors. The court must decide whether the proposed settlement appears to be fair to both the corporation and the absent shareholders.
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