Nursing Home Abuse Lawsuit Turns to Bankruptcy Trial

Family Members Seeking Justice in Nursing Home Abuse Case Face Shell Companies and Fraud, Now Turn to Bankruptcy Trial

bankruptcyThe family of a Florida woman who died in 2003 has spent over 10 years trying to win a lawsuit they filed against two nursing home companies, alleging serious nursing home abuse and neglect that led to the woman’s death.

Juanita Jackson was 76 years old when she died in July 2003, just five weeks after her family removed her from a skilled nursing facility operated by Trans Healthcare Inc and Trans Health Management Inc. Her injuries at the facility led to nursing home charges – Jackson suffered untreated bedsores, malnutrition, and a fall that injured her head.

The family won the nursing home abuse lawsuit in 2010, but Trans Healthcare and Trans Health Management never appealed the verdict, as many nursing homes do, nor did they pay the penalty – $55 million per each company – because the companies instead funneled money through a shell company called Fundamental Long Term Care Inc. Fundamental had no assets, but the shell corporation allowed Trans to continue operating nursing homes while protecting its finances from the law.

Now, other families of nursing home abuse victims have joined a larger bankruptcy lawsuit in Florida, which has filed a motion with US Bankruptcy Judge Michael Williamson to unravel the series of transactions that prevented Jackson’s family from receiving the damages award.

The bankruptcy trial is scheduled for 12 days total, without a jury, and will end in October.

Reportedly, by 2006, Trans Healthcare Inc (THI) and Trans Health Management Inc (THMI) faced over 150 nursing home abuse lawsuits across 15 states. However, THI and THMI sold their stock to Fundamental Long Term Care Inc, which allowed the companies to avoid shutting down facilities or facing the penalty for nursing home abuse across the country.

Another company, GTCR, was considered the “principal owner” of the THI companies and their assets before selling to Fundamental. Reportedly, GTCR did not consider “what was best” for THI – according to testimony from James Feltman, an expert witness for the plaintiffs – but instead only did “what was in the best interest of GTCR.”

“Service providers like THMI are often joined as defendants in professional liability and general liability cases by nursing home patients,” the Fundamental defendants said. Companies like THMI “are rarely found independently liable because they are not involved in or in any way responsible for hands-on patient care,” they said.

The Strom Law Defends Victims of Nursing Home Abuse and Neglect

Nursing home abuse and neglect cases can be difficult to establish because of a widespread tendency by insurance adjusters, physicians, among others, to discount an elderly person’s injuries and the diminished quality of life that results from these damages.

If your loved one has physically suffered, or died wrongfully, due to neglect or abuse in a nursing home, you may have a nursing home abuse case. The attorneys at the Strom Law Firm understand the sensitive nature of elder abuse cases, and will treat you with respect and compassion. It is important to fight elder abuse so you, your family, and others no longer suffer because of criminal behavior. We offer free, confidential consultations to discuss the facts of your case. Contact us today for help. 803.252.4800

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