Hospice company Enhabit Inc. persuaded Delaware's Chancery Court that private equity firms Nautic Partners LLC and Vistria Group LP affiliates unlawfully aided Enhabit officers in establishing a rival business.

"The defendants' pre-litigation conduct was nothing short of egregious," Vice Chancellor Lori W. Will wrote in the ruling Monday. "They willfully promoted breaches of the duty of loyalty by high-level Encompass officers. They did so in direct contravention of legal advice."

The decision stems from Enhabit's 2022 lawsuit accusing the private equity firms of conspiring with Enhabit's founder and ex-CEO, April Anthony, to build a rival business, VitalCaring Group.