A shareholder class-action lawsuit was filed against Kindred Healthcare, Louisville, Ky., alleging the nursing home chain "reported quarter after quarter of improved financial results and acquisitions" but "failed to reveal that due to a dramatic increase in professional liability claims, especially in Florida, defendants were not properly reserving for these incurred claims." The suit was filed by Milberg Weiss Bershad Hynes & Lerach, New York, in U.S. District Court in Louisville. Earlier this month, Kindred revised its 2002 earnings forecast and said it would increase reserves for resident care lawsuits by $55 million in addition to its normal third-quarter provision. The company also said it was considering selling its 18 nursing homes in Florida and other measures to reduce potential liability. The lawsuit contends Kindred "assured investors and analysts that Kindred (which was largely self-insured) carefully reviewed its reserves for claims on a monthly basis and would not have to take a large 'catch-up' charge." -- by Julie Piotrowski
Shareholder suit filed against Kindred
Send us a letter
Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.