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Published on 8/6/2010 in the Prospect News Distressed Debt Daily.

Skilled Healthcare seeks mistrial in California nursing home case

By Caroline Salls

Pittsburgh, Aug. 6 - Skilled Healthcare Group, Inc. has filed a motion for a mistrial or new trial on the grounds of juror misconduct in a lawsuit related to 22 California nursing facilities receiving administrative services from the company, according to a news release.

The mistrial motion was filed with the Superior Court of the State of California, County of Humboldt.

"Although we maintain that this matter should have been rejected by the court at the outset, the loss of our right to a fair and impartial jury cannot be ignored," Skilled Healthcare chairman and chief executive officer Boyd Hendrickson said in the release.

"I was astonished by the evidence we learned about this juror's concealed bias and apparent pernicious conduct that ultimately resulted in an egregious verdict.

"We take patient care very seriously and firmly believe that these skilled nursing companies are adequately and appropriately staffed."

As previously reported, Skilled Healthcare entered into an agreement with other parties to the case under which the plaintiffs agreed not to convert a $677 million jury verdict to a judgment and the company and other defendants agreed not to file for bankruptcy before 8:30 a.m. on Aug. 9.

Although the stipulation has not been extended, Skilled Healthcare said settlement talks are ongoing.

Skilled Healthcare is a Foothill Ranch, Calif.-based health care services company.


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