United States

Universal Health Services faces massive $895M verdicts, appeals loom

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Universal Health Services (NYSE:UHS) is facing substantial legal hurdles, as detailed in a recent SEC filing.

The company's subsidiary, Cumberland Hospital for Children and Adolescents, and its former medical director, Dr. Daniel Davidow, were found liable in a multi-plaintiff lawsuit.

A jury awarded a total of $360 million in damages, including $60 million in compensatory damages, $180 million in trebled damages under the Virginia Consumer Protection Act, and $120 million in punitive damages.

Cumberland Hospital is contesting the verdict and plans to appeal the decision.

Meanwhile, UHS is awaiting an appellate decision regarding another significant verdict against its subsidiary, the Pavilion Behavioral Health System.

In March 2024, a jury awarded $535 million in damages related to a 2020 incident of sexual assault between patients.

The Pavilion has also challenged the judgment and intends to appeal.

The resolution of these legal matters could have a material impact on UHS's future financial results and capital resources.

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