Judge dismisses radiologist’s fraud claims stemming from $20M sale to private equity
A judge has dismissed one Buffalo-area radiologist’s claims of fraud and malpractice stemming from his former practice’s $20 million deal with a private equity firm.
Gregory R. Ball, MD, of Orchard Park, New York, and his attorneys first filed the complaint against Southtowns Radiology Associates in February. Founded in 1959, the practice unloaded its outpatient centers to Rezolut in 2023, generating cash while easing the burden of running the business.
Ball said he had voiced his opposition to the deal, believing it was rushed, and then was allegedly shortchanged by at least $2 million after it was finalized. However, Judge Emilio Cotaiacovo on Nov. 28 dismissed allegations that fraud had taken place while allowing one contract-related claim to proceed, Buffalo Business First reported Thursday.
“Plaintiff's allegations lack any specificity,” Cotaiacovo wrote. “Instead, the complaint generalizes fraudulent conduct and alleges mere speculative conduct. For example, [Dr. Ball] asserts that he would never have executed the redemption agreement but for [Southtown’s] knowing misrepresentations. However, plaintiff fails to plead more. As such, the court hereby grants defendants' motion to dismiss.”
Attorneys from both sides did not immediately respond to a Radiology Business request for comment Thursday. You can read much more about the case from our story in June, when Southtowns Radiology Associates first filed its motion to dismiss. The case is headed to conference in April, according to Buffalo Business First, which has more here:
Marty Stempniak has covered healthcare since 2012, with his byline appearing in the American Hospital Association's member magazine, Modern Healthcare and McKnight's. Prior to that, he wrote about village government and local business for his hometown newspaper in Oak Park, Illinois. He won a Peter Lisagor and Gold EXCEL awards in 2017 for his coverage of the opioid epidemic.