Facts

California Attorney General Rob Bonta, along with a group of California District Attorneys and a Los Angeles City Attorney, brought a civil action against Tennessee-based Brookdale, Senior Living, Inc., the nation's largest senior living operator, alleging both Unfair Competition and False Advertising violations.

PLAINTIFFS' CONTENTIONS: Plaintiffs contended that defendant's ten California skilled nursing facilities failed to adequately notify and prepare residents for both transfers and discharges, which endangered the residents' health and left families ill-prepared for discharges. Plaintiffs also alleged that defendant misrepresented its quality of care to the public through false information, including over-reporting the number of hours nurses provided care to the Centers for Medicare & Medicaid Services, which awarded Brookdale higher star ratings as a result of the false information.

DEFENDANT'S CONTENTIONS: Defendant denied all contentions and claimed no liability or wrongdoing on its part.

Result

Stipulated judgment of $3.25 million, including $2,400,000 in penalties, $550,000 in costs, and $300,000 to the Kern County Long-Term Care Ombudsman. The settlement included an injunction ensuring Brookdale continues to comply with all applicable statutes and regulations, provides accurate statements to the Centers for Medicare & Medicaid Services (CMS) and appoints a quality specialist to oversee ongoing compliance with the injunction at its California facilities for an eighteen-month period after settlement.

Other Information

Brookdale provided the following statement: "We strongly disagree with the allegations. There are no findings Brookdale violated any laws or engaged in wrongdoing. Brookdale supports laws and regulations that protect seniors and govern our industry, and we are thankful to have a dedicated group of associates who provide high quality service and care to our residents. Our communities rely upon the relationships we build with our seniors, and our top priority will always be the health and safety of our residents and associates. Resolving this case for an amount equal to the continued cost of defense was in the best interests of our residents, and we are pleased to put this behind us."