Cohen & Gresser Files Delaware Action on Behalf of Former Revenue Masters Founders File Delaware Action Seeking Transparency on Equity Payout Following Reported EPFS Sale
PR Newswire
WILMINGTON, Del., Feb. 9, 2026
WILMINGTON, Del., Feb. 9, 2026 /PRNewswire/ -- The founders of the healthcare revenue‑cycle technology company Revenue Masters have filed a verified complaint in the Delaware Court of Chancery seeking access to books and records from Elevate RCM Holdings LLC following the reported sale of Elevate's operating subsidiary, Elevate Patient Financial Solutions (EPFS), by Frazier Healthcare Partners and The Edgewater Funds for over $1 billion, as reported by Axios. Axios also reported that the buyers were Audax Private Equity and Parthenon Capital, which acquired EPFS as part of a large‑scale healthcare revenue‑cycle management consolidation.
EPFS, formerly known as MedData, has expanded significantly over time through acquisitions, including Professional Medical Systems and NYX Eligibility Services, according to publicly available industry information. The complaint states that these prior acquisitions contributed to EPFS's size, scope, and valuation at the time of the reported 1B+ dollar transaction.
According to the lawsuit, the founders sold Revenue Masters to EPFS in 2023 and accepted a portion of their compensation in the form of Elevate membership units. Following the reported EPFS sale, the founders allege they received a wire payment on July 31, 2025, without advance notice and without any accompanying documentation explaining how the value of their equity or their distribution amount had been calculated.
"After years of pouring our blood, sweat, and ingenuity into building Revenue Masters, we are demanding the full transparency we deserve on how our equity was valued and distributed in this reported billion-dollar sale," said Rick Bengson, co‑founder of Revenue Masters.
"Elevate's outright refusal to share even the most basic details—like the actual sales price of the transaction or a simple calculation for what amounted to a large percentage of our company's sale consideration—would make anyone wonder what they're trying to hide," he added.
The complaint asserts that despite repeated requests, Elevate did not provide standard transaction information typically made available to equity holders in a major liquidity event, including the purchase price, transaction structure, escrow or holdback amounts, distribution waterfall, or supporting schedules used to calculate the founders' payout.
Following the July 31 payment, the complaint alleges that Elevate provided only a single PDF document described as a "waterfall summary." According to the filing, a forensic accounting firm retained by the founders concluded that the document was impossible to interpret without additional internal records and underlying financial data.
The action seeks inspection of Elevate's books and records under 6 Del. C. § 18‑305, which governs the rights of members of a Delaware limited liability company to access company records for a proper purpose. The complaint states that the requested materials are necessary to determine whether the July distribution was properly calculated and whether Elevate complied with its obligations to its members in connection with the reported transaction.
The case is In re Elevate RCM Holdings LLC, Case No. 2025‑1347, filed in the Delaware Court of Chancery. As of the date of filing, Elevate RCM Holdings LLC has not issued a public statement responding to the allegations.
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