Attorney General Tong Files Proof of Claim in Prospect Medical Holdings Bankruptcy

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07/16/2025

Attorney General Tong Files Proof of Claim in Prospect Medical Holdings Bankruptcy

(Hartford, CT) – Attorney General William Tong announced today the Office of the Attorney General has filed a proof of claim in the ongoing bankruptcy proceeding for Prospect Medical Holding, asserting claims for negligent misrepresentation, unjust enrichment, negligent performance of duties, violations of privacy laws and violations of the Connecticut Unfair Practices Act. The claim ensures that Connecticut continues to have a full seat at the table in facilitating the transition of Prospect’s hospitals in the state to a responsible new owner, and that Prospect is held accountable through the bankruptcy proceeding for the harm it has inflicted on the state and its patients.

The filing is accompanied by a draft complaint demonstrating the breadth of severe harm to the state, which tracks closely with the statement of interest filed by the state in February.

“In 2016, [Prospect] bought three of Connecticut’s nonprofit, community hospitals, promising robust investment and careful quality control. They said they would improve the hospitals’ facilities and expand their services. They said they would scrupulously guard their patients’ sensitive health information. Above all else, they said they would faithfully care for the health of Connecticut’s residents.

“None of that was true. [Prospect] took Connecticut’s community hospitals private and then sold the ground out from under them to fund massive investor payouts. They got rich deceiving the State’s enforcers; throttling its healthcare infrastructure; compromising the most private information of its residents; stiffing vendors; shortchanging the State through unpaid taxes; and endangering residents through compromising on vital medical care.

“Worse: [Prospect] never intended to make good. Their deceptive misrepresentations and unfair practices in Connecticut replicated their pattern of vulture capitalism across the country,” the draft complaint states.

Click here to view the full proof of claim and draft complaint filed in the U.S. Bankruptcy Court for the Northern District of Texas.

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Media Contact:

Elizabeth Benton
elizabeth.benton@ct.gov

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