Steward Health Care is suing its former and other former company officials, according to a bankruptcy filing this week that claims he and other top officials defrauded the company out of millions of dollars. The lawsuit alleges that former CEO Ralph De la Torre and others “operated Steward with the aim of enriching themselves at the expense of the company, its creditors, and its patients.””Plaintiffs bring this action against former insiders of Steward who, through their greed and bad faith misconduct, operated Steward with the aim of enriching themselves at the expense of the company, its creditors and the patients and communities that Steward served,” the filing said in part.According to the lawsuit, de la Torre received $81.5 million from a $111 million dividend paid in January 2021, when Steward was already insolvent.”Within just a few months, he purchased himself a $30 million superyacht, which he continues to enjoy to this day,” the suit alleges. Additionally, de la Torre is accused of leading Steward to drastically overpay in a $1.1 billion 2021 deal for five Miami-area hospitals and orchestrating a 2022 deal in which $134 million from the sale of certain assets was paid to an outside entity owned indirectly by Steward insiders. Last year, Steward filed for bankruptcy following the revelation that it owed millions in unpaid rent, which sparked a race to sell the Dallas-based company’s Massachusetts hospitals.Boston Medical Center took over Good Samaritan Medical Center, now known as BMC South, and St. Elizabeth’s Medical Center, now known as BMC Brighton, in Brighton. Four other former Steward facilities are now being operated by new hospital groups. Lifespan operates Morton Hospital and St. Anne’s Hospital, and Lawrence General Hospital is now operating Holy Family Hospital-Methuen and Holy Family Hospital-Haverhill.Two other Steward facilities, Carney Hospital and Nashoba Valley Medical Center, closed at the end of August 2024 after Steward did not find qualified bidders. Norwood Hospital, which was being rebuilt at the time of the bankruptcy because of a devastating flood, remains incomplete. Town officials, however, are continuing to work toward finding an operator to reopen the facility.

BOSTON —

Steward Health Care is suing its former and other former company officials, according to a bankruptcy filing this week that claims he and other top officials defrauded the company out of millions of dollars.

The lawsuit alleges that former CEO Ralph De la Torre and others “operated Steward with the aim of enriching themselves at the expense of the company, its creditors, and its patients.”

“Plaintiffs bring this action against former insiders of Steward who, through their greed and bad faith misconduct, operated Steward with the aim of enriching themselves at the expense of the company, its creditors and the patients and communities that Steward served,” the filing said in part.

According to the lawsuit, de la Torre received $81.5 million from a $111 million dividend paid in January 2021, when Steward was already insolvent.

“Within just a few months, he purchased himself a $30 million superyacht, which he continues to enjoy to this day,” the suit alleges.

Additionally, de la Torre is accused of leading Steward to drastically overpay in a $1.1 billion 2021 deal for five Miami-area hospitals and orchestrating a 2022 deal in which $134 million from the sale of certain assets was paid to an outside entity owned indirectly by Steward insiders.

Last year, Steward filed for bankruptcy following the revelation that it owed millions in unpaid rent, which sparked a race to sell the Dallas-based company’s Massachusetts hospitals.

Boston Medical Center took over Good Samaritan Medical Center, now known as BMC South, and St. Elizabeth’s Medical Center, now known as BMC Brighton, in Brighton.

Four other former Steward facilities are now being operated by new hospital groups. Lifespan operates Morton Hospital and St. Anne’s Hospital, and Lawrence General Hospital is now operating Holy Family Hospital-Methuen and Holy Family Hospital-Haverhill.

Two other Steward facilities, Carney Hospital and Nashoba Valley Medical Center, closed at the end of August 2024 after Steward did not find qualified bidders.

Norwood Hospital, which was being rebuilt at the time of the bankruptcy because of a devastating flood, remains incomplete. Town officials, however, are continuing to work toward finding an operator to reopen the facility.