Tenet Healthcare Corporation
The firm served as co-lead counsel for the plaintiffs, who alleged that Tenet Healthcare Corporation’s top executives breached their fiduciary duties to the company by failing to monitor, investigate and oversee Tenet’s patient procedures, Medicare billing and accounting practices. After prosecuting the case for over three years, Robbins LLP’s attorneys negotiated a comprehensive settlement, which included $51.5 million in cash contributions to Tenet and sweeping corporate governance reforms and other remedial measures designed to ensure the independence and accountability of the company’s board of directors. The new governance regime included separation of the positions of chief executive officer and chairman of the board of directors, strict internal financial controls, enhanced guidelines for stock ownership and stock retention and a comprehensive insider trading policy. The settlement was upheld on appeal.
In re Tenet Healthcare Corp. Derivative Litigation, No. 01098905 (Cal. Super Ct.–Santa Barbara County May 5, 2006), aff’d, No. B192252 (Cal. App. Sept. 20, 2007)