Nursing Home Resident Files Class Action Lawsuit Alleging Fraud

A nursing home resident filed a federal lawsuit alleging consumer fraud by a Milwaukee-based care chain with eight facilities in Minnesota. The suit was filed on behalf of as many as 1,400 residents of the eight Extendicare homes. The suit was filed by a woman who says Extendicare promises more than it can deliver, resulting in increased earnings yet poor care for residents and hundreds of rule violations in Minnesota. The suit alleges that state inspectors have cited the homes for 218 violations in the past two years. The state average is 10 violations per year. The class-action suit seeks restitution of approximately 40 percent of the fees paid by private-pay residents. Extendicare dismissed the allegations stating they were “false and misleading”. The suit states that Extindicare lured clients in by promises it could not provide, and sought out high-need residents to increase profits, regardless of whether they could meet their needs. Two months ago, a similar class-action lawsuit was filed in Seattle. To read the full story, click here.

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