The People of the State of California v. Santa Cruz Skilled Nursing Inc. dba Hearts & Hands, Post Acute Care & Rehab Center, Santa Cruz Skilled Nursing Center LLC, Sea Coast Health Care Management LLC, Vital Rehab Services Inc., Care Must Hospice, A.J. Rana, Trilochan Singh, and Does 1-50, inclusive
Published: Aug. 25, 2023 | Result Date: Apr. 11, 2023 | Filing Date: Sep. 12, 2019 |Case number: 19CV02767 Settlement – $102,584
Judge
Court
Santa Cruz County Superior Court
Attorneys
Plaintiff
Douglas B. Allen
(Office of the Santa Cruz County District Attorney)
Joel Samuels
(Office of the Attorney General)
Defendant
Scott J. Kiepen
(Hooper, Lundy & Bookman PC)
Facts
Santa Cruz Skilled Nursing, dba Hearts & Hands Post Acute & Rehab Center, is a nursing home. In September 2019, the California Department of Justice and District Attorney's Office filed a lawsuit in the Santa Cruz Superior claiming that Hearts and Hands violated Unfair Competition and False Advertising laws.
Contentions
PLAINTIFFS' CONTENTIONS: Plaintiffs contended that in 2018, the California Department of Justice began looking into the facility after it received allegations of improper discharges, substance abuse, and inadequate staffing.
DEFENDANTS' CONTENTIONS: Defendants denied all contentions, noting that they voluntarily agreed to the appointment of an independent monitor who had full access to their personnel and records.
Result
After three years of supervision by the independent monitor, the lawsuit has been completely resolved though part of the resolution involves defendant remaining under supervision for at least two more years and paying investigation costs ($52,584) and civil penalties ($50,000 immediately with $200,000 stayed unless defendant violates any settlement terms).
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