Naples, Fla.-based Health Management Associates has released a letter from its former general counsel to show his departure has “absolutely nothing to do” with a recent wrongful termination lawsuit against the system.
Paul Meyer, a former Health Management employee, has filed a lawsuit against the system claiming he was fired out of retaliation after identifying fraud. Shortly after news of the lawsuit broke, Timothy Parry announced his resignation as general counsel and secretary after 16 years with the system. News of Mr. Parry’s resignation was first discovered through an SEC form the system filed Jan. 10.
Health Management says Mr. Parry’s departure was based on “personal reasons alone,” and Mr. Parry has also released a letter to clarify. “Unfortunately, it appears the media and stock market wrongly connected my departure from the Company with the Company’s litigation in the Paul Meyer case,” the letter reads, according to the report. “Let me be clear — I resigned from the Company purely for personal reasons, my reasons are my reasons alone, and they have absolutely nothing to do with the Meyer case.”
News of the lawsuit and general counsel’s resignation caused HMA stocks to plunge by 13 percent last week.
Correction: This brief had initially reported that Mr. Parry’s departure had nothing to do with a “recent qui tam lawsuit” against the system. The headline had also reported the issue related to a “whistleblower lawsuit.” These inaccuracies were revised Jan. 18.
Related Articles on Health Management Associates:
Health Management CEO: “No Merit Whatsoever” to Lawsuit Causing Stock Plunge
Whistleblower Claims HMA Fired Him After He Discovered Fraud
False Claims Recoveries and Whistleblower Suits Reach All-Time High
