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flag Prospect Medical Holdings files for bankruptcy, citing Yale New Haven Health's lawsuit over a failed $435M deal.

flag Prospect Medical Holdings, which owns three Connecticut hospitals, is in Chapter 11 bankruptcy, blaming Yale New Haven Health's lawsuit to back out of a $435 million deal for exacerbating its financial troubles. flag Yale New Haven Health alleges that Prospect's management led to an inflated purchase price. flag Prospect countersued for the full purchase price. flag The Connecticut hospitals may be sold at auction as soon as June 5.

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