New Jersey Gastroenterology Practice Files for Chapter 11

Atlantic Gastroenterology Associates in Egg Harbor Township, N.J., has filed for Chapter 11 bankruptcy protection after it was ordered to pay a former physician $8.7 million for breach of contract violations, according to a report in the Press of Atlantic City.

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The five-physician group reported a debt of $9.2 million and 10 other debts that amount to $500,000 in court documents, according to the report.

The major source of the debt comes from a court decision made in favor of Dordaneh Maleki, MD, who sued Atlantic Gastroenterology over a contract she signed that said she would be made a full partner of the practice after about three years, according to the report. Dr. Maleki said the contract was not honored and was fired by the practice.

According to Dr. Maleki’s attorney, the practice did not have the right kind of insurance to protect itself from this kind of legal battle. Representatives for Atlantic Gastroenterology did not comment in the report.

Read the Press of Atlantic City’s report on Atlantic Gastroenterology Associates.

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