Every year, thousands of nursing homes are the subject of lawsuits and litigation throughout the country. Rarely do those cases make national headlines. A private equity firm has been the target of a long-awaited trial that is being held in a Tampa bankruptcy court. According to Huffington Post, the case has been brought on behalf of six elderly victims who suffered from abuse, neglect, and inadequate care while under the care of nursing homes owned by Trans Healthcare, INC (“THI”).
There is no dispute in this case about whether elderly victims suffered abuse at the hands of their caretakers, and the operators of the many nursing homes. State courts have already awarded damages in excess of $1 billion in these cases. The issue is where the monetary awards should come from. Even though the families have been awarded these damages in previous state cases, none of the victims’ families have been able to collect due to an alleged unlawful abuse of bankruptcy laws.
The judge in this case stated that it has, “all the makings of a legal thriller.” The case has been the subject of wide dispute as victims suffered abuse in nursing homes acquired by GTCR in 1998. Bruce Rauner, the Republican candidate for governor of Illinois, was also the chairman of the Chicago based company during the time that the company became the subject of litigation. The company bought over 200 nursing homes throughout the country.