DELRAY BEACH, Fla. - UpHealth, Inc. (OTC: UPHL), a global provider of behavioral health solutions, announced a significant legal victory on Monday in an international arbitration case. The International Court of Arbitration of the International Chamber of Commerce ruled in favor of UpHealth's subsidiary, UpHealth Holdings, Inc., against Glocal Healthcare Systems and several of its officers and shareholders.
The arbitration decision, dated March 18, 2024, found the respondents liable for breach of contract following UpHealth Holdings' acquisition of Glocal on October 30, 2020. The tribunal ordered the respondents to pay UpHealth Holdings up to $110.2 million in damages, along with most of the legal costs and expenses incurred during the arbitration.
The damages are to be paid by various shareholders of Glocal based on their respective ownership percentages. The tribunal specifically noted that the respondents failed to transfer control of Glocal to UpHealth Holdings after the acquisition was completed, despite receiving full payment.
In a statement, UpHealth expressed its commitment to holding the respondents accountable for their "indefensible conduct" and the harm caused to UpHealth and its stockholders. The company also highlighted its focus on improving its business and maximizing stockholder value.
Dr. Avi Katz, Chair of UpHealth's Board of Directors, emphasized the board's dedication to acting within their fiduciary duties and mentioned recent business restructuring efforts. He also expressed disappointment regarding two board members who had joined an investment and voting group with the Glocal shareholders, calling for their immediate resignation to avoid conflicts of interest.
UpHealth, through its subsidiary TTC Healthcare, Inc., provides various levels of care for mental health issues and substance use disorders, serving health plans, healthcare providers, and community-based organizations.
The company's press release also contained forward-looking statements regarding the collection of the awarded damages and the composition of UpHealth's Board, among other future business projections.
This report is based on a press release statement from UpHealth, Inc.
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