Cardinal Innovations Healthcare, a managed care services provider in Charlotte, N.C., filed a lawsuit against former CEO Richard Topping March 26 to recover the nearly $1.7 million he received in severance after being fired last year, according to The Charlotte Observer.
Here are four things to know about the situation.
1. Cardinal Innovations held a press conference March 26, during which a former federal prosecutor hired by the organization provided a detailed case against Mr. Topping, claiming he "stole" proprietary information, destroyed agency data and engaged in "a pattern of self-enrichment … at the expense of Cardinal," according to the report.
2. HHS released a 17-page report in October 2017 criticizing the organization and the severance packages Cardinal Innovations offered Mr. Topping and his team. The following month, HHS took over the organization, firing Mr. Topping and the board, and demanded Cardinal Innovations repay the $3.8 million in "unlawful" severences it offered Mr. Topping and three executives, The Charlotte Observer reports.
3. During the press conference March 26, Cardinal Innovations' attorney alleged Mr. Topping repeatedly sought higher compensation and that he appeared to have been planning a new business venture while working at the organization. The lawyer also pointed to evidence illustrating Mr. Topping had erased data from his Cardinal-provided devices after learning of the state's impending involvement, according to the report.
4. The Charlotte Obsever's attempts to reach Mr. Topping were unsuccessful.
To access the full report, click here.