Universal Health Services Inc. (NYSE:UHS) has experienced a significant development in an ongoing legal case, according to a recent SEC filing. The Pavilion Behavioral Health System, a subsidiary of Universal Health Services, faced a lawsuit over a 2020 incident where one minor sexually assaulted another minor patient. On March 28, 2024, the jury awarded the plaintiff compensatory damages of $60 million and punitive damages of $475 million.
However, on Thursday, October 10, 2024, the court ordered a reduction of the punitive damages from $475 million to $120 million, while the compensatory damages remained unchanged. The plaintiff now has 21 days from the order’s date to accept the reduced punitive damages or proceed with further legal action.
Universal Health Services has indicated its intention to appeal the remaining judgment once the plaintiff responds to the court’s decision. The outcome of this case could potentially have a material adverse effect on the company. It’s important to note that the final resolution and the ultimate damages awarded are still uncertain.
This information is based on a press release statement and provides an update on the legal proceedings that could impact Universal Health Services’ financial position.
In other recent news, Universal Health Services has been a focal point of financial analysts’ attention. The company successfully issued $1 billion in senior secured notes and amended its credit agreement, introducing a new $1.3 billion revolving credit facility and a $1.2 billion term loan facility. Despite facing significant legal challenges with two of its subsidiaries, Universal Health Services is evaluating all legal options, including appeals.
KeyBanc initiated coverage on Universal Health Services, assigning a Sector Weight rating, indicating a neutral stance on the company’s stock. RBC Capital Markets and Baird raised their price targets to $222 and $274 respectively, while UBS upgraded Universal Health Services, citing a positive outlook on the company’s earnings potential.
BofA Securities also increased its price target to $235, noting potential additional supplemental payments pending approval in Tennessee and the District of Columbia.
These are recent developments for Universal Health Services, a company that continues to attract interest from investors and financial analysts. The company’s robust earnings growth and strategic financial management have been recognized by several financial firms, leading to upgraded price targets and positive outlooks.
