Steward Sues Ex-CEO Over Alleged $245M Fraud

Steward Health Care, previously one of the largest for-profit hospital chains in the U.S., has sued its founder and ex-CEO Dr. Ralph de la Torre and three former executives, alleging they defrauded the company of over $245 million and caused its bankruptcy through self-enrichment schemes. The lawsuit claims these executives engineered insider transactions, including a $111 million dividend in 2021 while Steward was insolvent, with de la Torre alone receiving $81.5 million, some of which went toward luxury purchases such as a $30 million superyacht. Steward also alleges the group overpaid by about $200 million in acquiring five Florida hospitals from Tenet Healthcare, a move purportedly driven by de la Torre's personal ambitions. These actions allegedly left the company undercapitalized, leading to unpaid bills, supply shortages, and the closure or sale of hospitals. Steward, now managed by a court-appointed administrator, is seeking to recover funds through litigation as part of its bankruptcy process. De la Torre and the other defendants deny the allegations and intend to contest the claims in court.