A 2008 lawsuit alleging that Liberty Medical Supply, Inc. was stopped when it filed for Chapter 11 bankruptcy protection; however, the lawsuit has continued to proceed against co-defendants.  The lawsuit alleges that Liberty, its parent company, Medco Health Solutions, Inc., and two employees failed to return over payments to Medicare and Medicaid.  The provisions of the bankruptcy code stopped the case from proceeding against Liberty but not against the other defendants.  They are now asking the bankruptcy court to extend that same protection to the other defendants.

For more read, “Liberty Medical Seeks Protection for Former Parent Medco Health.”