Alston & Bird has been recognized for its role successfully representing the country’s largest mobile provider of medical diagnostic services in federal litigation that was key to the company’s restructuring and earned it 2020 “Large Company Turnaround of the Year” honors from the Turnaround Management Association (TMA).
The firm was singled out for its work defending Trident USA Health Services against allegations under the False Claims Act. A leader in mobile diagnostic and X-ray services used largely by skilled nursing facilities and other institutional health care organizations, Trident was accused of paying illegal kickbacks by providing “below cost” services reimbursed under Medicare Part A in exchange for X-ray and other services reimbursed at a higher rate under Medicare Part B.
The case was investigated by the U.S. Attorney’s Office for the Eastern District of Pennsylvania, U.S. Department of Justice’s Civil Fraud Section, and three qui tam law firms representing whistleblowers (or relators). Significantly complicating the matter, Trident was operating under Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York, and resolution of this case was integral to its prearranged restructuring plan.
As counsel to Trident, Alston & Bird was instrumental in negotiating and settling the dispute following a multiweek mediation over the summer of 2019 and with significant involvement by the bankruptcy court and the law firms representing Trident, its creditors, and its new post-bankruptcy owner. The firm also secured the government’s approval not to impose a corporate integrity agreement, a document outlining Trident’s obligations as part of the settlement, which would have risked the company’s successful emergence from bankruptcy.
The bankruptcy court approved Trident’s restructuring on September 20, 2019, preserving its going-concern value and approximately 5,000 jobs.
Defending Trident against the False Claims Act allegations was an Alston & Bird team led by partners Bill Jordan and Jason Popp (Health Care Litigation) and Dawnmarie Matlock (Health Care).
The False Claims Act cases were United States ex rel. Ravi Srivastava, et al. v. Trident USA Health Services LLC, et al., No. 2:16-cv-02956 and United States ex rel. Peter Goldman v. Symphony Diagnostic Services No. 1, LLC, d/b/a MobilexUSA, No. 2:19-cv-01603, before the U.S. District Court for the Eastern District of Pennsylvania. The bankruptcy case was In re: Trident Holding Company LLC, et al., No. 1:19-bk-10384, in the U.S. Bankruptcy Court for the Southern District of New York.
Established in 1988, TMA has 10,000 members in 54 chapters serving the corporate renewal and restructuring communities worldwide. Its members include turnaround practitioners, attorneys, accountants, advisors, liquidators, consultants, as well as academics, government employees, and members of the judiciary.