Owner of 57 Nursing Homes Faces Class Action Suit
Tad Thomas, Esq.
A national law firm has filed a class action lawsuit against the owner of 57 California nursing homes. The suit alleges that Shlomo Rechnitz and others involved hid their rap sheet of violations of nursing industry law and regulation from patients and prospective patients, ultimately misrepresenting the quality of care at facilities. It also alleges that homes were consistently understaffed and underfunded for the sake of profit. Ultimately, it says, these actions constitute fraud, unfair business practices, and violation of resident
Rechnitz owns Brius Management and Brius LLC, which has nursing facilities all over California, including Los Angeles, Pasadena, Inglewood, and San Gabriel to name just a few. The lawsuit seeks to block him from taking over 19 more. Rechnitz calls the allegations, “baseless and untrue,” claiming that it comes only after his company denied a “lucrative” legal consulting contract with the firm.
According to Rechnitz, the suit doesn’t name harm or abuse. However, it does cite that the company was a “serial violator” of California rules and failed to turn in necessary reports. Either way, it has elder advocates concerned and is shaping up to be quite the legal fight. Most obviously, it highlights how goliath the industry and its problems are.
If you are thinking about helping a loved one make the transition into a nursing home or assisted living facility, take your time in choosing the right one. For helpful guides in choosing the right home, take a look at our blog.