Nursing Home Chain’s Tangled Corporate Structure and Bankruptcy Threats Stymied Litigation

August 5, 2022

(STAT News) – Romero’s family is one of many who faced similar hardball tactics, plaintiffs’ lawyers said. In the six-year run-up to the bankruptcy filing of six Consulate affiliates, at least 137 plaintiffs across a half-dozen states had sued the affiliates on allegations ranging from negligence and wrongful death to Medicare fraud, according to an online search of legal databases; many cases were settled and the outcome of others was unclear. A STAT investigation found that in many of these cases, lawyers for Consulate affiliates leveraged the threat of bankruptcy in seeking to lower settlements, and that the companies’ actions fit a larger pattern. (Read More)