There are no reports of Qui Tam court actions or of government fraud investigations. Genesis seems to have a clean record. It has accused HRC manor Care of securities fraud and a number of other offences. It has gone to court to enforce its rights.
GHV/Vitalink File Suits Against HCR Manor
Business Wire May 7, 1999
-- Genesis Health Ventures, Inc. (NYSE:GHV) and Vitalink Pharmacy Services (d b a NeighborCare(sm)), a subsidiary of Genesis, today filed multiple lawsuits requesting injunctive relief and compensatory damages against HCR Manor Care, Inc. and two of its subsidiaries and principals.
Genesis filed a complaint against HCR Manor Care and two of its subsidiaries and principals in federal district court in Delaware including, among other counts, securities fraud.
Genesis and Vitalink seek over $ 100 million in compensatory damages and enforcement of a 10-year non-competition clause. Genesis acquired Vitalink from Manor Care in August 1998. In 1991, Vitalink and Manor Care entered into long term master pharmacy agreements which gave Vitalink the right to provide pharmacy services to all facilities owned or licensed by Manor Care and its affiliates.
Health care companies staging court
The Associated Press State & Local Wire May 11, 1999
Two of the biggest players in Maryland's health care industry are headed to court.
Genesis, based in Kennett Square, Pa., alleges that HCR Manor Care is unwilling to honor the contracts signed by Manor Care before it merged with the Ohio company.
Genesis wins contract fight with
The Philadelphia Inquirer February 16, 2002
An arbitrator has awarded $23.4 million to Genesis Health Ventures Inc., of Kennett Square, in a contract dispute with an Ohio nursing-home chain.
Manor Care Inc., of Toledo, did not lawfully terminate its pharmacy service contracts with Genesis' NeighborCare Pharmacy subsidiary, according to the arbitrator, Charles B. Renfrew. The ruling means these contracts will remain in force until September 2004. He awarded $23.4 million in damages to NeighborCare for business lost with Manor Care and some nursing homes of the former Healthcare & Retirement Corp. of America, which is now part of Manor Care.
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