Marlton, N.J.-based Virtua Health has sued Livonia, Mich.-based Trinity Health and is seeking no less than $12 million in compensatory damages regarding Virtua's acquisition of two Our Lady of Lourdes Health Care Services hospitals from Trinity in 2019.
The April 22 lawsuit, obtained by Becker's, detailed how during the acquisition process, Trinity was sued by Browns Mills, N.J.-based Deborah Heart and Lung Center to block the Lourdes deal from moving forward.
Deborah Heart and Lung claimed that the acquisition would breach a master partnering agreement between Lourdes and Deborah Heart and Lung, which prevented both parties from entering into agreements with other hospitals in Burlington County, N.J.
The lawsuit claimed that in the material transfer agreement, Trinity agreed to indemnify Virtua regarding any losses sustained during the litigation with Deborah Heart and Lung, which was resolved last September.
However, Virtua alleged that Trinity has breached its indemnification obligations and has failed to make any payment, which has resulted in damages that exceed $12 million for Virtua.
"Those objections reflect a transparent attempt by Trinity, a $20 billion plus company, to avoid paying the Indemnity Claim, which amounts to a small fraction of Trinity's litigation war chest," the lawsuit claimed.
Both Virtua and Trinity declined to provide Becker's with a comment on pending litigation.