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$6M deal to end Pa. attorney general’s lawsuit over Golden Living Center’s nursing home marketing claims

Patriot-News - 9/10/2021

A six-year court battle waged by the state attorney general’s office over what it claimed was misleading marketing by the Golden Living skilled nursing facility chain is ending with a $6 million settlement.

Attorney General Josh Shapiro said Friday that most of the payment from the chain - $4 million -will be used to finance the Pennsylvania’s nursing home inspection system. “This agreement provides crucial funding for inspections to ensure that nursing homes are safe and provide essential care to Pennsylvania seniors,” Shapiro said.

The consent decree containing the agreement is awaiting approval by Commonwealth Court.

The case, launched by Shapiro’s predecessor Kathleen Kane in 2015, had its ups and downs. It was founded on the AG’s claim that Golden Living, which hasn’t had a presence in Pennsylvania since 2017, was sending out marketing material promising services it didn’t actually provide. The firm had several facilities in central Pennsylvania and was mentioned in PennLive’s investigative series “Failing the Frail.”

A Çommonwealth Court panel dismissed the AG’s suit in 2016, ruling that the advertising claims in dispute were mere “puffery,” exaggerations that weren’t legally actionable. Shapiro appealed and the state Supreme Court reinstated the suit in 2018.

The Supreme Court found the AG’s office had made viable claims against Golden Living under the state’s Unfair Trade Practices and Consumer Protection Law. The crux of the dispute is the AG’s claims that Arkansas-based Golden Gate National Senior Care, Golden Living’s parent corporation, exaggerated the level of care provided to its customer and deliberately understaffed its facilities to maximize profits.

The consent decree also gives Shapiro’s office strict oversight and access to company information should Golden Gate seek to resume doing business in the Keystone State.

©2021 Advance Local Media LLC. Visit pennlive.com. Distributed by Tribune Content Agency, LLC.

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