He said the company may have omissions-and-errors insurance, which protects high-level directors from liability for their business decisions. Bridgewater, Taunton, Quincy, Easton abruptly closesĬompass' ability to pay is a major question that will be answered through litigation, Sweet said. Shut down announced: Compass Medical with clinics in E. "The class members deserve to be paid something," Sweet said. While Sweet said he does not have any internal documents that point to prior knowledge of an inevitable closure, he believes business decisions going back months led to the shutdown. "Someone from Compass didn't wake up and say, 'Oh, my God, we have to close.' That's not how this industry operates." "It's hard for any reasonable patient to believe everything came tumbling down in a day or even a week," Sweet said. Sweet, who filed the class-action lawsuit June 2, said Compass' board of directors should have notified patients of the closure long before May 31. How the bankruptcy might affect the class-action lawsuit against Compass In October 2022, a Suffolk County Superior Court jury ordered Compass to pay $16 million to its partner, Steward Health Care System, for fraud. Jeffery could not be immediately reached for comment.Ĭhapter 7 bankruptcy "provides for liquidation – the sale of a debtor's nonexempt property and the distribution of the proceeds to creditors," according to the government website. Sweet works for the Milton-based Keches Law Group. It's disappointing, but not shocking, that they're hiding behind bankruptcy laws to avoid responsibility for the harm they've caused." "It's certainly a disappointing legal tactic that they're taking," Sweet said. The class representative in that case, Richard Callanan, of Abington, is represented by lawyer Jonathan Sweet. The bankruptcy filing comes on the heels of a class-action lawsuit filed in Plymouth Superior Court on Friday. The Quincy-based corporation, which also had a branch in Braintree, will have no money available to pay unsecured creditors after administrative expenses are paid, according to the bankruptcy form submitted by Compass President Bruce Weinstein and his attorney, D. QUINCY – Compass Medical's decision to file for bankruptcy will affect a class-action lawsuit filed on behalf of patients and might delay access to their health records, lawyers say.Ĭompass filed for Chapter 7 bankruptcy Monday, less than a week after abruptly closing its doors and discontinuing services to about 70,000 patients.
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