07:34 AM EST, 12/06/2024 (MT Newswires) -- (Updates to add Nautic and Vistria Group's joint statement in the fifth paragraph and the recent stock movement in the seventh paragraph.)

Encompass Health ( EHC ) and Enhabit ( EHAB ) said Wednesday the Delaware Court of Chancery awarded them damages and other remedies related to a lawsuit against former executives and private equity firms over alleged misconduct.

The companies said the court found that former senior officers April Anthony, Luke James, and Chris Walker breached fiduciary duty, aided by Vistria Group, Nautic Partners, and others, to benefit a competitor, VitalCaring Group.

The court said the former senior officers misused confidential information, diverted business opportunities, and recruited employees from Encompass Health ( EHC ) while allegedly hiding their actions, according to the companies.

Encompass and Enhabit ( EHAB ) said that remedies include a 43% share of VitalCaring's profits, 43% of the exit proceeds if and when VitalCaring is sold, about $1.6 million in mitigation damages, and attorneys' fees.

"We are reviewing the Court's decision and will consider all available options related to the ruling, including the possibility of filing an appeal," Nautic Partners and The Vistria Group said in an emailed joint statement to MT Newswires. "Nautic Partners and The Vistria Group are committed to the highest standards of integrity and compliance across our respective operations and those of our portfolio companies."

VitalCaring Group did not respond to a request for comment from MT Newswires.

Shares of Enhabit ( EHAB ) were up 1.9% in recent Friday premarket activity while Encompass stock declined by 1.4%.