Nautic Partners and The Vistria Group, the private equity backers of home health and hospice provider Vital Caring, are mulling a potential appeal of a federal court’s recent decision in a dispute with Encompass Health (NYSE: EHC) and Enhabit Inc. (NYSE: EHAB).

A federal judge in Delaware on Monday ordered VitalCaring, Nautic and Vistria to share 43% of future profits Encompass Health and Enhabit Inc. The two companies allege that the founders of VitalCaring, including CEO April Anthony, used unethical practices to get the company off the ground, adversely affecting the two plaintiffs. Anthony previously served as CEO of Encompass Health’s home health and hospice segment.

The two private equity firms, co-defendants in the lawsuit, are now considering their legal options.

“We are reviewing the Court’s decision and will consider all available options related to the ruling, including the possibility of filing an appeal,” the firms stated in an email to Hospice News. “Nautic and The Vistria Group are committed to the highest standards of integrity and compliance across our respective operations and those of our portfolio companies.”

Both firms are longtime investors in health care, including home health and hospice companies.

The roots of the case were planted in 2021 when Encompass Health began considering a spin off of its home health and hospice business as a standalone company, now known as Enhabit Inc. Also that year, the company that emerged as VitalCaring was established and started to build itself up through acquisitions.

In 2021, Encompass sought an injunction against Anthony, alleging that she violated terms of her employment agreement, including breach of non-competition and non-solicitation obligations, and misappropriation of trade secrets.

The court ordered that 43% of VitalCaring’s future profits be placed in trust to benefit Encompass and Enhabit. The remaining 57% would go to Vistria Group and Nautic Partners. The court will appoint a trustee to oversee the trust and associated capital allocations.

The judge’s ruling could have bearing on another high profile legal case affecting the home health and hospice community. The U.S. Department of Justice recently filed a lawsuit to block UnitedHealth Group’s (NYSE: UNH) $3.3 billion acquisition of Amedisys inc. (Nasdaq: AMED), due to antitrust concerns. Helping to pave the way for that deal, Amedisys has been seeking to divest certain locations to VitalCaring to ameliorate those concerns. The Encompass, Enabit decision could upend that pending transaction.

“Encompass Health and Enhabit launched the litigation to protect the interests of their stockholders in the wake of the illegal and outrageous conduct of Anthony and the other former officers,” statements from the two companies indicated. “Encompass Health and Enhabit believe the broader investing public will also benefit from the Delaware Court of Chancery’s clear message that intentional breaches of fiduciary duty and self-dealing by corporate officers will have severe consequences.”