Enhabit Inc. and Encompass Health have collected $43.1 million from individual defendants in a Delaware Court of Chancery case involving breaches of fiduciary duty. The court found "egregious breaches of the duty of loyalty" by former officers while they served at Encompass Health's former home health and hospice division, now Enhabit. The settlement covers claims for attorneys' fees and mitigation damages, which will be divided substantially equally between Enhabit and Encompass Health. Additionally, a constructive trust has been imposed, entitling Enhabit and Encompass Health to split 43% of ongoing profits and any exit proceeds from VitalCaring Group if it is sold. The constructive trust order against other defendants in the case remains in effect.
Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Enhabit Inc. published the original content used to generate this news brief via Business Wire (Ref. ID: 20260211722345) on February 12, 2026, and is solely responsible for the information contained therein.