10 Sep Baptist Health Systems, Inc., et al. v. General Reinsurance Corporation, et al.
MONTGOMERY COUNTY SETTLEMENT OF $4,900,000
This case arose from the merger of the Alabama Hospital Association Trust, of which Baptist Health System was the largest participant, with a Virginia-based insurance group, Reciprocal of America. In making the decision to merge, Baptist Health System relied on representations from actuaries and Reciprocal officers that Reciprocal of America was financially sound. Later, Baptist Health System learned that it had been provided false information. Through pretrial discovery, Plaintiffs were able to prove that the Defendants had conspired to conceal information and to create the appearance of financial stability at Reciprocal of America.