August 2, 2010

CLIFTON N. MILLER and JOHN R. LaBAR – MEMBER DERIVATIVE SUIT FILED IN COFFEE COUNTY, TENNESSEE AGAINST COFFEE MEDICAL GROUP, LLC d/b/a UNITED REGIONAL MEDICAL CENTER AND ITS FORMER CEO (Lisa Veteto and The Fairmont Group, LLC v. Coffee Medical Group, LLC d/b/a United Regional Medical Center, et. al., Case No. 10-282, Chancery Court of Coffee County, Tennessee).


Henry & McCord attorneys, Clifton N. Miller and John R. LaBar, have filed a member derivate lawsuit on behalf of members of Coffee Medical Group, LLC d/b/a United Regional Medical Center (“URMC” or the “Company”) in the Chancery Court of Coffee County, Tennessee. The lawsuit is also filed on behalf of the nominal defendant URMC and against URMC’s former CEO, Robert George. URMC is in the business of operating an acute-care, full-service community hospital and nursing home. The action alleges breaches of fiduciary duty, mismanagement of corporate assets and seeks judicial intervention to prevent further harm to the members. The action is captioned Lisa Veteto and The Fairmont Group, LLC v. Coffee Medical Group, LLC d/b/a United Regional Medical Center and Robert George and has case number 10-282.

As detailed in the complaint, URMC has repeatedly failed to provide the Plaintiffs required corporate documents of the Company. In addition, according to the complaint, Defendant, Robert George, breached his fiduciary duties to the Company by failing to exercise the care an ordinarily prudent person in a like position would exercise under similar circumstances and by taking actions which were not in a manner that Defendant George, in his position as CEO of the Company, believed to be in the best interests of URMC. Defendant George’s, intentional violation and/or reckless disregard of his standard of conduct as an officer, his breaches of his fiduciary duties of care, loyalty, accountability and disclosure to members has harmed the Plaintiffs and the Company for which they are entitled to recover damages from Defendant George.

The Plaintiffs request in the Complaint that a corporate audit of URMC be conducted, that Defendant George be made to account for any wrongful acts and his breaches of his fiduciary duty to the Company, and for judicial intervention in order to ensure the safekeeping, collection, management and disposition of the Company’s property, to achieve the substantial ends of justice and to prevent further harm to the Company.

This press release is intended as a broad summary of the 16-page complaint, which is available from the Court and can be viewed below.

Download PDF

“George and URMC sued by Investors”, The Saturday Independent. 03 August 2010.

“URMC embroiled in 2 lawsuits over formcer CEO”, The Tullahoma News. 03 August 2010.

“URMC sued by former CEO”, Manchester Times. 04 August 2010

“Investors sue Hospital, former CEO”, The Saturday Independent. 09 August 2010.


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