Judge halts depositions in CHS' Lutheran Health Network's lawsuit against ex-CEO: 7 takeaways

Allen County (Ind.) Superior Court Judge Nancy Boyer halted the deposition of several witnesses asked to testify in Fort Wayne, Ind.-based Lutheran Health Network's lawsuit against the health system's former CEO Brian Bauer Friday, according to The Journal Gazette.

Here are seven things to know about the case.

1. Judge Boyer ruled LHN's attorneys must wait to question witnesses under oath until a Tennessee judge issues a ruling on Mr. Bauer's motion to dismiss the lawsuit Jan. 25, the report states.

2. The judge said filing the subpoena requests placed an "unreasonable" burden on the witnesses if the Tennessee judge dismisses the lawsuit.

3. However, Judge Boyer said her ruling would not stop LHN and parent company Franklin, Tenn.-based Community Health Systems, from deposing witnesses subpoenaed in Indianapolis, which is not part of Allen County.

4. LHN filed a lawsuit against Mr. Bauer and "Sajin Young," the alias of a Facebook account that made disparaging comments against CHS, Nov. 2. The lawsuit alleged Mr. Bauer and the anonymous Facebook account sought to undermine its business relationships, drive away patients and physicians, and drive down LHN's value, according to the report.

5. Following the filing of the lawsuit, the Facebook account was deleted, the report states.

6. The lawsuit contends Mr. Bauer, who was fired from his position as CEO in June, shared confidential information with Indianapolis-based IU Health, which violated CHS' stock option agreement. The for-profit hospital operator also alleged Mr. Bauer is subject to the agreement's confidentiality and nondisparagement clauses. CHS and LHN are seeking unspecified damages and for the two individuals to be ordered to stop publicly criticizing CHS.

7. However, a filing made on behalf of one of the individuals to be deposed indicated CHS has thus far been unable to produce a signed contract illustrating Mr. Bauer agreed to the conditions placed on him with regard to exercising his stock options, according to the report.

To read the full report, click here.

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.


Featured Whitepapers

Featured Webinars