Posted 2/18/2013 12:00 am
A pharmaceutical company is suing a handful of nursing home management companies for allegedly trying to wiggle out of a $2.5 million debt.
CP Acquisition Corp., doing business in Little Rock as Central Pharmacy Co., filed a lawsuit in Pulaski County Circuit Court over the alleged fraud. According to the suit, Central Pharmacy was providing pharmaceutical supplies to about a dozen nursing homes, all of which were allegedly owned directly or indirectly by Joey Wiggins.
Wiggins is the owner of ConvaCare Inc., one of the companies named in the suit. ConvaCare manages Byrd Haven Nursing Home in Searcy and Rolling Hills Nursing Center in Batesville.
Central Pharmacy claims that attorney Buck Gibson, agent of process for the defendants, on Nov. 30 announced that all of the nursing homes were, or were about to be, insolvent, and would be transferred to third parties. At the same time they would terminate their agreements with Central Pharmacy, effective Dec. 31. The problem was that the companies allegedly still owed Central Pharmacy a total of about $2.5 million.
Other companies named in the suit were Fountain Lake Health & Rehab Inc., Gyman LLC, Maumelle Health Services LLC, Northcare LLC, Senior Care Inc., Southpoint Health LLC, Rolling Hills H.C. Inc., Wagnon Place Health Facilities LLC, Woodland Health LLC, Trumann Health Services LLC and Skilcare Health Services LLC.
Gibson has since filed to deny Central Pharmacy’s allegations, including both the outstanding debt and Wiggins’ involvement with the management companies.
Gibson told Whispers that he could not comment on the suit.