Skilled Healthcare Group Inc., a nursing home operator, has agreed to pay out a $50 million settlement for a class action lawsuit. The settlement is much less than the $670 million a jury had previously ordered.
Recently, a Humboldt County Superior Court found that the company was liable for understaffing at 22 assisted-living facilities in the state of California. State law requires nursing homes to maintain 3.2 nursing hours per patient per day.
The lawsuit was filed on behalf of patients and their families. Following the original jury verdict, the company filed an appeal in July. In its recent settlement, Skilled Healthcare admitted to no wrongdoing and said in a statement that it would deposit $50 million into accounts to cover all settlement payments. The company also said that the jury's verdict would have more than exhausted its insurance policies and its credit lines.
Additionally, as part of the settlement, the company has agreed to have an outside monitor track its nursing staff levels for each of its 22 locations in California for the next two years.
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