It was reported on Jan. 26 that a Louisiana home health company filed a lawsuit against the former owners of a company that they purchased. According to the complaint, the former owners were accused of maintaining a bank account that allowed them to continue to obtain income from the business after the sale was finalized.
The lawsuit was filed on Nov. 12. In the complaint, Stat Home Health of Northwest Louisiana LLC claimed that they purchased Supra Home Health Care from a former owner. The owner allegedly entered into the agreement on behalf of the other defendants. However, after the agreement was made, the new owners allegedly discovered that the former owners were being reimbursed for Supra's services, though the money was being paid into a separate bank account. The money was allegedly not transferred to the new owners at the time of the sale.
The new owners of the company accused the defendants of fraud and breach of contract in addition to breach of presentation and other offenses. The plaintiffs were reportedly seeking a certain amount in damages, though the amount was not known.
When a company or a business person is accused of fraud, they not only face being responsible for paying a certain amount in damages to the plaintiff, they could also potentially lose their ability to work in their industry in the future. Depending on the circumstances of the case, an attorney may demonstrate that the defendants had no intention of defrauding the plaintiff by providing certain documents and other evidence. These documents may include financial statements and use expert testimony from forensic accountants or computer analysts. Additionally, they may analyze any contracts or agreements in order to potentially discredit their client's alleged attempts to defraud the other party.
Source: The Louisiana Record, "Home health company sues former owners for alleged theft, fraud," Kyle Barnett, Jan. 26, 2015