Tulare hospital district accuses ex-board members, legal council of breaching fiduciary duties

The Tulare (Calif.) Local Healthcare District sued three of its former board members and its prior legal counsel April 24 for allegedly breaking their fiduciary duty to the district, according to the Valley Voice.

In its lawsuit, the hospital district accused the BakerHostetler law firm, attorney Bruce Greene, Parmod Kumar, MD, former board president Linda Wilbourn and board member Richard Torrez of putting their own interests over those of the district. The lawsuit also claims the parties committed professional negligence and that Mr. Greene committed fraud while attempting to block an elected member from joining the board.

Among the allegations, the hospital district accused the former board members of breaching their fiduciary duties when they greenlighted a resolution that gave Healthcare Conglomerate Associates the ability to borrow $22 million in the district's name. The board members gave approval to use the funds as collateral without requiring further board approval, according to the report.

For the full report, click here.

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