A federal judge in June dismissed several claims in a lawsuit brought by four physicians against former leaders of Charlottesville, Va.-based UVA Health and canceled the jury trial that had been scheduled for late 2026.
The physicians have since filed a revised complaint, and the court heard arguments Aug. 18 on the defendants’ motions to dismiss it but has not yet ruled, according to court documents reviewed by Becker’s.
The lawsuit was filed Oct. 3, 2025, in the U.S. District Court for the Western District of Virginia. The physicians alleged that from 2020 to 2025, former UVA Health CEO K. Craig Kent, MD, and his leadership team directed fraudulent billing and documentation practices and retaliated against physicians who objected. The defendants have denied the allegations.
Here are nine things to know:
1. The plaintiffs are four current and former UVA physicians: Jeffrey Young, MD; Kenan Yount, MD; Mark Roeser, MD; and John Kern, MD. Defendants include Dr. Kent; Melina Kibbe, MD, former dean of the UVA School of Medicine; Wendy Horton, PharmD, former CEO of UVA Health University Medical Center; physicians Allan Tsung, MD, Ourania Preventza, MD, and Kim de la Cruz, MD; the Rector and Visitors of the University of Virginia; and UVA Physicians Group.
2. The case has narrowed since it was filed. The commonwealth of Virginia, originally named as a defendant, was no longer a party as of Feb. 4. On May 5, two representatives of deceased patients’ estates who were original plaintiffs voluntarily dismissed their claims and are no longer parties.
3. On April 9, the court paused the merits discovery while it considered the defendants’ sovereign immunity arguments.
4. On June 2, Judge Norman Moon granted in part and denied in part the defendants’ motions to dismiss the first amended complaint. All dismissals were without prejudice, meaning the claims could be refiled.
5. In the June 2 order, the judge dismissed the physicians’ claims under the Racketeer Influenced and Corrupt Organizations Act. Citing a 2000 U.S. Supreme Court decision, he wrote that the alleged harms, including demotion and being pushed out of their jobs, “are insufficient for statutory standing under RICO.” He explained that civil RICO requires an injury to business or property directly caused by racketeering activity.
6. The order also dismissed False Claims Act and Virginia Fraud Against Taxpayers Act retaliation claims against the individual medical leaders. The judge found the statutes do not allow claims against supervisors in their individual capacities. He also dismissed Dr. Roeser’s claims under those laws, finding he had not sufficiently alleged protected activity related to fraud against government programs. The physicians’ claims under Virginia’s whistleblower protection law against UVA and UVA Physicians Group were dismissed as well. Retaliation claims by Dr. Young, Dr. Yount and Dr. Kern against UVA and UVA Physicians Group under the federal and state false-claims statutes were not dismissed at that stage. The court deferred ruling on the defendants’ sovereign immunity arguments.
7. The same order canceled the jury trial that had been scheduled for November and December 2026. No new trial date has been set.
8. On June 15, the physicians filed a second amended complaint. It reasserts the RICO and RICO conspiracy claims against all defendants, alleging the physicians were direct victims of extortion and witness tampering aimed at them. Retaliation claims are now asserted only against UVA and UVA Physicians Group.
9. In early July, all defendants moved to dismiss the revised complaint. Dr. Kent, Dr. Kibbe, Dr. Tsung and Dr. Horton argued the physicians still lack standing and that the revised complaint “does not change the underlying facts; it simply changes the labels.” UVA again raised sovereign immunity, which the court deferred in June. In an Aug. 3 filing, the physicians argued the revised complaint “plausibly alleges each element” of their claims and that “the motions should be denied.” The judge heard arguments Aug. 18 and has not yet ruled.
The University of Virginia and an attorney for Dr. de la Cruz declined to comment. Becker’s has reached out to attorneys for the plaintiffs and defendants and will update this story if more information becomes available.
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