Federal Case Update

3/31/2012

The 4th Circuit has issued an opinion in favor of Tuomey on our appeal. We are pleased that the 4th Circuit Court has decided that the District Court's judgment violated Tuomey’s Seventh Amendment right to a jury trial, and vacated (reversed) the $50 million judgment against Tuomey Healthcare System.

At this time, attorneys are reviewing the 31-page order. The Government has 45 days to ask for a rehearing. If it does not do so, then the matter goes back down to the District Court, here in South Carolina, for further proceedings, and Tuomey can request that its money be released from escrow and sent back to Tuomey.

As the Court of Appeals said in the opinion: "The whole case, including the issues of fact at the former trial is open for hearing and determination." This includes the incorrect finding by the first jury that Tuomey violated the Stark Law.Again, we are pleased with this news and we will keep you posted as we learn more.

Jay Cox, FACHE
President & CEO