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Skilled to mediate $671 million case

July 15, 2010

Skilled Healthcare Group Inc., an operator of long-term care facilities, said today it agreed to go to mediation in an effort to settle a case alleging improper staffing. A jury in Humboldt County CA turned in a verdict of $671 million against the company in the case earlier this month.

The firm said it agreed to not file for bankruptcy protection through Aug. 9 as part of a deal to pursue mediation.

Bloomberg reported that plaintiffs accused the company of improperly staffing 22 facilities in California. The case was filed about four years ago.

Foothill Ranch CA-based Skilled Healthcare Group had revenue of  $759.8 million in 2009.

The case is Vinnie Lavender, by and through her Conservator, Wanda Baker, Walter Simon; Jacquelyn Vilchinsky vs. Skilled Healthcare Group Inc. et al.