Kaiser Alleges $5 Million in Losses in PPE Purchase Scheme

Kaiser Alleges $5 Million in Losses in PPE Purchase Scheme
Nurses wearing personal protective equipment attend to patients in a COVID-19 intensive care unit at Martin Luther King Jr. Community Hospital in Los Angeles, Calif., on Jan. 6, 2021. Patrick T. Fallon/AFP via Getty Images
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LOS ANGELES—Kaiser Foundation Health Plan Inc. is suing a company and a former Kaiser employee for allegedly defrauding the health plan out of millions of dollars as it raced to meet the challenges of having sufficient personal protective equipment for its medical staff during the pandemic.

The allegations in Kaiser’s Los Angeles Superior Court lawsuit against Wasatch Co. include breach of an oral and written contract, unjust enrichment, breach of the duty of loyalty, fraud and receipt of stolen property. Kaiser seeks unspecified compensatory and punitive damages in the suit brought June 24.

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