Greg Pimstone has Manatt in serious trouble

Greg Pimstone has Manatt in serious trouble

Greg Pimstone, the leader of the law firm Manatt, Phelps & Phillips’ healthcare litigation practice, has literally led the firm into a scandal that is no less than a potential reputational landmine. With a billion dollar lawsuit filed in the US District Courts in LA naming three top lawyers in the LA office of the firm as racketeers, conspirators and slanderers, the firm’s  management is understandably mad at Greg Pimstone, the one person whom the three allegedly rogue lawyers were directly reporting to.

Greg Pimsotne, who likes himself to be referred to as one of the leading healthcare litigators in the country, seems to have had some very serious lapses of judgement in the way he allowed his team to work on helping Manatt’s client Health Net deal with its outstanding claims issue, which has now snowballed into a major controversy.

As is already widely known, Sovereign Health Group, a mental healthcare service provider that was operational in Los Angeles till 2018 has filed a billion dollar lawsuit against Health Net, its Deputy General Counsel, Liann Gohari, and its parent company Centene Corporation and its CEO, Michael Neidorff, for conspiring with the three Manatt lawyers, viz. Ileana Hernandez, John Leblanc and Kenneth Julian, and two other entities, namely Optum Services Inc. and Managed Health Network Inc.

As per the allegations in the case document available here – https://bit.ly/3ccANw2 – the rogue Manatt Lawyers, who actually work under Greg Pimstone, willingly participated in a malicious campaign with Centene & Health Net and others to drive it out of business.

The malicious campaign against Sovereign was hatched and executed by the alleged conspirators to ensure that

  • The truth about the failing financial health of Health Net remained under wraps,
  • Health Net’s acquisition by Centene could materialise
  • The pending claims amount of over $300 million and taxes that Health Net was supposed to pay could be booked as profit by Centene, thus pushing its share price even higher in the stock market
  • Centene’s CEO Michael Neidorff could take home millions in cash and stock as his compensation and performance bonus
  • And finally, Michael Neidorff could sell $20 million worth of his stock while in possession of all the above information that he hid from Centene’s investors and stakeholders

The above sequence of events clearly hint towards a major corporate scandal and white collar crime that will attract federal investigation. Manatt management knows that they have a huge crisis at their hands to deal with immediately.

If Greg Pimstone is absolutely clean and had no inkling of what these rogue lawyers were exactly up to, then it is obvious that Manatt’s management has an inept man on the job who is absolutely unfit to run its Los Angeles office.

And if, whatever transpired was in Greg Pimstone’s knowledge and with his approval, and it was he who kept his bosses at Manatt in dark about the gravity of the situation, then he is as crooked as his team members and only luckier that his name hasn’t been included in the said lawsuit. However, his luck may run out sooner than he thinks possible.

The ball, for now, is in the court of Manatt’s management. It goes without saying that whatever they do or not do to right the wrongs that their team members have committed will decide the future of their reputation and practice.

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