Thoughts on Lawsuit Ramifications?
On November 1, 2010 the Court issued a Statement of Decision in which it ruled that Section 445 applied to the Care Entrée program and that Section 445 had been violated. On January 21, 2011 the Court issued a judgment enjoining Defendants Precis, Inc. and The Capella Group Inc, and Defendants’ agents, employees and representatives, as of six months after the effective date of the injunction, from operating the Care Entrée program in the State of California as it pertains to referring people to a physician, hospital, health-related facility, or dispensary for any form of medical care or treatment. The Judgment also provides that it does not prohibit Defendants from operating a program that complies with California law. The Judgment further provides that pursuant to the prior settlement agreement the injunctive relief is stayed pending appeal and the effective date of the injunction is the date the appeals process ends. Precis, Inc. and the Capella Group, Inc. have until March 25, 2011 to appeal the Judgment. An adverse outcome in this case would have a material affect our financial condition and would limit our ability (and that of other healthcare discount programs) to do business in California. We believe that we have complied with all California statues and regulations. Although we believe the Plaintiffs’ claims are without merit, we cannot provide any assurance regarding the outcome or results of this litigation.
What do you think of the lawsuit? Am I reading it right that they would have to pullout of offering their alternative health products in CA?
AI
