In a case decided June 12, 2018 by the U.S. District Court for the Eastern District of Arkansas, Kutak Rock attorneys secured a decision leading to the dismissal of a class action on behalf of a nursing home company client. The court ruling defeated a class filed in state court by plaintiffs who sought millions of dollars and damages against four nursing homes for alleged understaffing.

The plaintiffs alleged that understaffing violated state and federal regulations. The court held that the complaint was too vague and did not assert any individual injury or damage to residents. The plaintiffs also claimed illegal exaction, alleging that the nursing home received Medicaid payments from the state for services that were not provided. The Court dismissed all of the plaintiffs’ claims and specifically held that the illegal exaction theory is not viable, which establishes a new precedent in nursing home litigation.

Kutak Rock attorneys successfully removed to federal court, opposed remand, and responded to the plaintiffs’ attempt to appeal the remand decision to the U.S. Court of Appeals for the Eighth Circuit. After the denial of remand, the Court fully granted Defendants’ motion to dismiss the case in its entirety.

This case is the latest in a string of nursing-home class action victories by Kutak Rock. The team’s efforts have saved their clients from years of litigation, expense, and discovery.

The Kutak Rock team included Mark Dossett, Samantha Leflar, Jeff Fletcher, Dale Brown, and Andrew King. Mr. King had primary responsibility for the briefing at all stages of the proceeding.