Updated
Updated · The Wall Street Journal · Apr 28
YesCare faces new lawsuit over alleged sham bankruptcy filing
Updated
Updated · The Wall Street Journal · Apr 28

YesCare faces new lawsuit over alleged sham bankruptcy filing

8 articles · Updated · The Wall Street Journal · Apr 28
  • Trustees for Tehum Care Services creditors filed suit in Houston after YesCare defaulted on a $75 million settlement, missing required payments since September 2025.
  • The lawsuit alleges YesCare and its backers siphoned funds, committed fraudulent transfers, and used the Texas Two-Step maneuver to shield assets and liabilities.
  • With the default, YesCare and affiliates lost their litigation shield, exposing them to claims from hundreds of personal-injury plaintiffs alleging medical malpractice and other harms related to prison healthcare services.
A $75M deal collapsed. Can creditors now unravel a prison healthcare provider’s alleged sham bankruptcy?
After losing a $1B contract and a $307M verdict, is the private prison healthcare model collapsing?
Are private equity's profit-seeking tactics fundamentally incompatible with providing humane prison healthcare?
With courts scrutinizing the 'Texas Two-Step,' can companies still use it to dodge massive injury lawsuits?
With 98% of medical grievances rejected, is litigation the only path to justice for prisoners?