Enhabit announced it has collected $43.1 million in full satisfaction of its claims for attorneys’ fees and mitigation damages in a Delaware Court of Chancery case against former officer Chris Walker, Vistria Group senior partner David Schuppan, and Nautic Partners managing director Christopher Corey.
The settlement resolves a fiduciary breach claim that stemmed from a December 2024 judgment in favor of Enhabit and Encompass Health Corporation. The judgment found egregious breaches of the duty of loyalty by the former officers, who usurped acquisition opportunities, used confidential information, and recruited employees to a competitor, VitalCaring Group.
The judgment also established a constructive trust that entitles Enhabit and Encompass Health to 43% of VitalCaring Group’s ongoing profits and exit proceeds if the company is sold. That trust remains in effect, independent of the settlement.
The $43.1 million cash inflow eliminates the outstanding liability and provides a substantial boost to Enhabit’s balance sheet. The company has been actively reducing debt, having made prepayments in Q4 2025, and the settlement aligns with that deleveraging strategy.
Enhabit operates 247 home health locations and 115 hospice locations across 34 states. In Q4 2024 the company reported a net loss of $46.0 million, while in Q3 2025 it posted a net income of $11.1 million. The settlement therefore represents a significant positive event relative to recent financial performance.
The proceeds are to be divided substantially equally between Enhabit and Encompass Health, although the exact split has not been disclosed. The settlement does not affect the constructive trust, which continues to offer potential upside if VitalCaring Group is sold.
The legal outcome underscores Enhabit’s commitment to protecting its assets and upholding fiduciary duties. By securing a favorable judgment and a sizable settlement, the company has removed a lingering legal risk and reinforced its position as a leading provider of home health and hospice services.
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