Embody Well being (NYSE: EHC) and Enhabit Inc. (NYSE: EHAB) introduced Thursday that it has collected $43.1 million in attorneys’ charges and mitigating damages in reference to its profit-sharing lawsuit with residence well being and hospice supplier VitalCaring.

On this case, a federal decide in Delaware ordered that 43% of VitalCaring’s income and any exit proceeds from a sale be positioned in belief and divided between Embody and Enhabit. The remaining 57% might be allotted to the personal fairness financiers of VitalCaring, Vistria Group and Nautic Companions.

The case centered on “intentional misconduct” on the a part of April Anthony, Luke James and Chris Walker, who served as senior officers at Embody Well being’s former residence well being and hospice division. In accordance with the courtroom’s 116-page opinion, Embody’ residence well being and hospice division was spun off in 2022 to turn out to be Enhabit Inc. to kind.

Anthony, the CEO of VitalCaring, based Embody Residence Well being & Hospice in 1998 and grew the corporate into a big nationwide presence. In 2021, Anthony, Vistria Group and Nautic Companions based VitalCaring.

Embody Well being alleged that Anthony and her colleagues used unethical practices to ascertain VitalCaring and that she violated the phrases of her employment contract.

VitalCaring was beforehand scheduled to accumulate greater than 100 residence well being and hospice places that had been divested as a part of UnitedHealth Group’s (NYSE: UNH) acquisition of Amedisys. The deal was placed on maintain after VitalCaring was ordered to allocate 43% of its future income to Embody Well being and Enhabit.

VitalCaring lately dramatically expanded its geographic footprint with the acquisition of Traditions Well being’s residence well being, hospice and palliative care companies.