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Federal and state laws address the legal issues that arise when two willing parties agree to sign a contract. Based out of Arkansas, Grace Healthcare also discovered federal and state statutes protect nursing home residents from deceptive business practices.
On May 25, 2017, a judge announced the preliminary approval of a class action settlement between two primary plaintiffs and Grace Healthcare. The class action lawsuit alleged Grace Healthcare understaffed numerous nursing homes, which violated the contracts signed by residents as well as the statutory rights granted under federal and state laws.
Lead plaintiffs Patsy Padgett and Marilyn Gillespie filed the Grace Healthcare class action lawsuit in April of 2012. The primary plaintiffs accused Grace Healthcare and several of the parent company’s subsidiaries with purposely under staffing nursing homes to boost profits. With a second amended complaint filed on November 21, 2013, plaintiff Deanne Hooker joined the original primary plaintiffs in the class action lawsuit. Class counsel for the three lead plaintiffs claimed Grace Healthcare violated the Residents’ Rights Act and the Arkansas Deceptive Trade Practices Act. The three primary plaintiffs also charged the defendants with breaking resident admission agreements.
Terms of the Grace Healthcare class action settlement requires the company to set up an $8.4 million settlement fund to pay the incentive awards for the primary plaintiffs and distribute financial awards to eligible class members. The defendants continue to deny the allegations, but the companies agreed to the class action settlement to avoid the outcome uncertainty of a prolonged civil trial.
What You Need To Know About The Grace Healthcare Nursing Home Class Action Settlement
According to court documents, eligible class members for the Arkansas Grace Healthcare class action settlement “include anyone who was a resident (or their family member) at the Grace Healthcare Nursing Homes in Benton and/or Maumelle, Arkansas between February 2007 and June 10, 2010.” The potential award is $44 per day that an eligible class member lived in a nursing home managed by Grace Healthcare. Lawyers submitting claim forms for clients who invoke power of attorney privileges must submit a copy of the power of attorney order with the class action settlement claim form.
Qualifying class members have until September 26, 2017 to submit a valid claim form. The judge in charge of the case Marilyn Gillespie, et al. v. Benton Investments & Associates LLC d/b/a Grace Healthcare of Benton, et al., Case No. 60CV-15-2239, in the Pulaski County, Arkansas Circuit Court scheduled the final hearing on September 5, 2017.The class action settlement website presents a detailed description of what transpired during the final hearing. You can also review the list of attorneys who represent the class and defense counsels, and determine if the claims administrator has made any changes to the potential award.