Skilled Healthcare Group files Motion for Mistrial on grounds of juror misconduct

Aug 7 2010

Skilled Healthcare Group, Inc. (NYSE: SKH) filed a Motion for Mistrial or New Trial on Grounds of Juror Misconduct with the Superior Court of the State of California, County of Humboldt, earlier today in the case entitled VINNIE LAVENDER, by and through her Conservator, WANDA BAKER, WALTER SIMON; JACQUELYN VILCHINSKY vs. SKILLED HEALTHCARE GROUP, INC., et al (and 22 individually-named California nursing facilities receiving administrative services from Skilled Healthcare, LLC).  

As previously disclosed, the Company entered into a stipulation with the other parties to the case pursuant to which, among other things, the plaintiffs agreed not to seek any relief to convert the previously announced $677 million jury verdict in the litigation to a judgment and the Company and other defendants agreed not to file a voluntary petition for relief in any United States Bankruptcy Court prior to 8:30 a.m. on August 9, 2010. This stipulation has not been extended; however, settlement discussions in this case are ongoing.  

"Although we maintain that this matter should have been rejected by the court at the outset, the loss of our right to a fair and impartial jury cannot be ignored," said Boyd Hendrickson, Chairman and Chief Executive Officer of Skilled Healthcare Group, Inc.  "I was astonished by the evidence we learned about this juror's concealed bias and apparent pernicious conduct that ultimately resulted in an egregious verdict.  We take patient care very seriously and firmly believe that these skilled nursing companies are adequately and appropriately staffed."