A Norfolk nonprofit for the LGBT community has settled a $1.1 million lawsuit with a former drug program partner for an undisclosed amount.
The LGBT Life Center and Florida-based CAN Community Health have settled the lawsuit out of court, Life Center lawyer Patrick O’Donnell said in a Sept. 18 letter to a Norfolk Circuit Court judge.
The settlement concludes a $1.1 million lawsuit brought by CAN in 2023, which said the Life Center owed the money for a failed 340B Drug Pricing Program. The federal program allows entities to help low-income and uninsured patients with pharmaceutical drug costs.
Life Center spokesperson Corey Mohr said in an emailed statement the nonprofit would not disclose the terms of the settlement, but added “we are confident this resolution allows LGBT Life Center to continue focusing on what matters most to us — serving our clients, strengthening our programs and advancing our mission.”
A spokesperson for CAN Community Health also declined to comment.
CAN filed the lawsuit in May 2023 in Norfolk Circuit Court, saying in court documents it was owed the money from a cost-sharing agreement. However, Life Center attorneys later said the failed partnership cost the Norfolk nonprofit around $3.2 million as of mid-2024 — almost a third of its total expenses for the 2024 fiscal year, according to tax documents.
The settlement comes as the Life Center recently opened a Hampton location in September 2024 and, like many area nonprofits, was impacted by a temporary federal grant freeze earlier this year.
Trevor Metcalfe, 757-222-5345, [email protected]