Some major legal woes have come to an end for hospital operator Community Health Systems. The company announced Wednesday afternoon that it has “prevailed completely” in the litigation brought against it by former acquisition target Tenet Healthcare in Texas.
According to CHS, District Court Judge Barbara M.G. Lynn dismissed the case with prejudice based on Tenet’s lack of standing to bring the action.
“We believe Tenet’s Board and management team initiated this litigation for the purpose of distracting shareholders from our bid to buy their company,” said CHS CEO Wayne Smith. “From the inception of this lawsuit, we have said there was no basis for Tenet to pursue its self-serving litigation. Today’s ruling brings a conclusion to Tenet’s unfounded lawsuit and we are pleased to put it behind us.”
Further details about the lawsuit and its origins can be found here.
Shares of CHS (Ticker: CYH) didn't budge much after the company released word of the ruling. They closed Wednesday trading down 0.7 percent to $23.04. Year to date, they've climbed more than 30 percent.