21st Century Oncology Inc., a bankrupt cancer treatment provider, and patients whose personal information was jeopardized by a cyberattack have struck a deal that clears a significant hurdle in the company’s efforts to restructure its balance sheet, WSJ Pro Bankruptcy reported. In court papers filed on Monday with the U.S. Bankruptcy Court in White Plains, N.Y., lawyers for the embattled company said the deal expunges a claim for $123 million sought by patients but sets aside insurance assets to fund any future judgments related to the data breach. Separately, the company reached a $26 million settlement with the U.S. government related to allegations of fraudulent billing practices. The settlement amount is nondischargeable and slated to be paid over five years, court papers show. 21st Century Oncology, which is continuing to treat patients while in chapter 11, says it is the world’s largest provider of integrated cancer treatment services. The cancer giant, based in Fort Myers, Fla., filed for bankruptcy in May after falling behind on debt payments. The company says that tightening insurance reimbursements and a number of costly government penalties are to blame for its financial hardship.
