California jury orders Skilled Healthcare to pay $671 million in damages

Friday, July 9, 2010

A California jury in a Humboldt County courthouse ordered nursing home operator Skilled Healthcare (SH) to pay $671 million (about €531 million) in a class action lawsuit from patients of SH’s 22 California facilities and their families. The jury found that SH failed to properly staff its facilities to comply with California state law.

The jury has not heard the case for punitive damages; however, it awarded the plaintiffs $613 million (about €484 million) in statutory damages. The remaining $58 million (about €46 million) was in restitution.

After the verdict was issued, Skilled Healthcare stocks plunged over 75% to a record low.

An official statement from SH says it “strongly disagrees” with the jury’s verdict. SH plans on filing an appeal to the decision. The company could possibly face bankruptcy because of this verdict.

One of the lawyers for the nearly 32,000 plaintiffs, Timothy Needham, claimed that inadequate staffing levels put SH’s patients at risk. He said, “The company knows that this lack of staffing causes a higher risk of problems for patients. Call lights don’t get answered, persons don’t get proper hygiene, persons don’t get their medications on time or the care they need.”

This lawsuit does not apply to SH’s facilities in Arizona, Iowa, Kansas, Missouri, Nevada, New Mexico, and Texas.

Releated

Best Health Insurance For International Students

By James Anderson, October 3, 2023 Best health insurance for international students For international students venturing into new academic environments, securing appropriate health insurance is paramount. The best health insurance for international students not only offers financial protection but also ensures access to quality healthcare, a critical factor in alleviating the stress associated with studying […]

Australian Crm Software

By John McAllister, March 10, 2026 Australian CRM Software The Australian retail sector is projected to surpass AUD 450 billion in total turnover by the end of 2025. This anticipated growth, fueled by shifting consumer preferences, the ongoing digital transformation, and heightened competition, underscores the necessity of efficient retail accounting practices. For retail owners, mastering […]