On May 17, 2019, RCT filed suit in the Delaware Court of Chancery against entities and individuals affiliated with Chicago-based private equity firm Sterling Partners on behalf of the Adeptus Litigation Trust. The suit alleges breach of fiduciary duty of loyalty that Sterling Partners owed as a controlling stockholder, unjust enrichment, and aiding and abetting breaches of fiduciary duty. The Adeptus Litigation Trust is the successor-in-interest to Adeptus Health, Inc. (“Adeptus”), a publicly traded operator of free-standing emergency rooms that filed for bankruptcy in April 2017. The suit alleges that, not long before Adeptus’s bankruptcy, Sterling Partners obtained $566.5 million in connection with offerings of Adeptus stock and Adeptus’s purchase of limited liability company units from Sterling in self-dealing transactions, constituting a windfall. Certain former Adeptus officers and directors are also named as defendants in the suit.
Read complaint here.
