In re UGHS Senior Living, Inc.

We were retained by the Liquidating Trust of UGHS Senior Living, Inc., to investigate and prosecute claims for breach of fiduciary duty against UGHS Senior Living's former officers and directors.  UGHS Senior Living, wholly owned by University General Health System, Inc., owned and operated a series of senior living communities.  In 2014, the directors of UGHS Senior Living breached their fiduciary duties to the entity by causing it to guaranty almost $10 million of debt owed by is parent.  Those guarantees rendered UGHS Senior Living, and it did not receive any benefit from the debt.  Ultimately, parent defaulted on the loan and the lenders sought payment from UGHS Senior Living, which was forced to petitioned for bankruptcy.  The matter settled favorably for the Liquidating Trust.
For more information, please contact Larry Eagel or David J. Stone.