Document Category:
State: California
Subject Matter: Skilled Healthcare Verdict
Document Title:
Comments:

Conclusion(s) — Last night SKH announced a CA jury has delivered a $671m

verdict against the company. Punitive damages have yet to be decided. If the

verdict is upheld, it is difficult to foresee how SKH could continue as an ongoing

entity. However, it is possible that the judge could reduce the unprecedented size

of the verdict. SKH will likely want to appeal, but would be unable to post the

required 150% bond unless the verdict is first reduced. We believe SKH has

contested excess insurance coverage of up to $126m. We have not yet talked to

management.


Document Author: Citi Group
Firm/Company: Citi Group
Document Date: July 7 2010
Search Tags: skilled ltc staffing
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