Posted On: July 7, 2010 by David W. Terry

California Nursing Home Operator Slapped With $671 Million Verdict In Class-Action Lawsuit

A California nursing home operator has been hit with a $671 million verdict in a class-action lawsuit filed in Humboldt County Superior Court.

A jury imposed maximum damages against Skilled Healthcare in a class-action lawsuit on Wednesday, July 7, 2010. The lawsuit alleged that the company violated a California statute that requires a minimum of 3.2 nursing hours per resident per day from 2003 to 2009. The alleged negligence affected approximately 32,000 residents at 22 facilities statewide.

In response to the lawsuit, the jury awarded $613 million for statutory damages and $58 million in restitution. Next week, the jury will decide whether to impose punitive damages on the company. Judge Bruce Watson will also rule whether the court will impose an injunction against the company to require it to maintain the required staffing levels.