Exhibit 99.1
UpHealth Comments on Needham Action Ruling
Believes Court Erred by Ignoring Settled New York Law and Decades of Precedent
Company is Exploring All Options in Response to Ruling
DELRAY BEACH, Fla., Sep. 18, 2023 (GLOBE NEWSWIRE) UpHealth, Inc. (UpHealth, the Company, we or us)
(NYSE: UPH), a global digital health company delivering technology platforms, infrastructure, and services to modernize care delivery and health management, today provided an update on the legal action Needham & Company LLC v. UpHealth
Holdings, Inc. and UpHealth Services, Inc. (the Needham Action), which arose out of UpHealth Services, Inc.s engagement of Needham & Company, LLC (Needham) to provide placement and other financial advisory
services.
The trial court in New York issued a Decision and Order on September 14, 2023 granting summary judgment in favor of Needham. The Decision
and Order provides that Needham is entitled to fees in the amount of $31,345,000, plus interest.
The Company provided the following statement:
We have reviewed the Order and are deeply disappointed that the Court appears to have redefined contract terms under a theory of
successor liability, in contravention of New York law. In our view, the ruling which the court issued at the summary judgment phase without hearing oral arguments disregards established precedent and the factual record. We are
exploring all options, including a potential settlement with Needham and an appeal, to vigorously defend the Company.
Dr. Avi Katz, Chair of
UpHealths Board of Directors said, While we explore all options with respect to this unprecedented decision, we remain focused on our important mission of enabling high quality, affordable and accessible healthcare for all. This judgment
does not affect our commitment to our customers and partners as we leverage our unique technology, data and expertise to improve patient outcomes.
If and to the extent necessary, the Company intends to enforce an agreement executed by Dr. Chirinjeev Kathuria, Dr. Mariya Pylypiv and Mr. Al
Gatmaitan (the Indemnitors), pursuant to which they agreed to be responsible for the Companys liabilities to Needham in excess of $8,000,000. There can be no assurance that the Company will be successful in collecting monies owed
from the Indemnitors.
About UpHealth
UpHealth is a
global digital health company that delivers digital-first technology, infrastructure, and services to dramatically improve how healthcare is delivered and managed. The UpHealth platform creates digitally enabled care communities that
improve access and achieve better patient outcomes at lower cost, through digital health solutions and interoperability tools that serve patients wherever they are, in their native language. UpHealths clients include health plans, healthcare
providers and community-based organizations. For more information, please visit https://uphealthinc.com and follow at UpHealth Inc on LinkedIn.
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