Skilled Healthcare Group, Inc. (NYSE: SKH) announced Tuesday that it has come to a settlement agreement in the case entitled VINNIE LAVENDER, by and through her Conservator, WANDA BAKER; WALTER SIMON; JACQUELYN VILCHINSKY vs. SKILLED HEALTHCARE GROUP, INC., et al (and 22 individually-named California nursing facilities receiving administrative services from Skilled Healthcare, LLC). As part of the settlement agreement, which remains subject to approval of the Superior Court of California, Humboldt County, Skilled Healthcare Group will deposit a total of $50 million into escrow accounts to cover settlement payments to class members, notice and claims administration costs, certain service payments to named plaintiffs, plaintiffs’ attorneys’ fees and costs and other payments.
The agreement calls for a release of all claims against Skilled Healthcare related to the litigation and contains no admission or concession of wrongdoing. The payments to fund the escrow accounts for the settlement are expected to be funded by Skilled Healthcare’s revolving credit facility. The injunction that was imposed by the court will be in effect for a period of 24 months unless extended for additional three-month periods as to those defendants that may be found in violation. If the facilities demonstrate compliance for an 18-month period may petition for termination of the injunction.
