Extendicare Lawsuit for False Advertising to be Defended

Extendicare Real Estate Investment Trust, which operates 268 nursing homes throughout North America, has issued a statement in response to a nursing home class action lawsuit filed against them in Washington State Court in Seattle last month.

The Extendicare lawsuit was filed on August 21, 2008, against their nursing homes in Washington State, as well as their wholly owned subsidiary, Extendicare Homes, Inc.

The lawsuit seeks class action status on behalf of all residents at Extendicare nursing homes in Washington, alleging that the company makes false statements and conceals facts intended to induce citizens to become residents under the false pretenses that Extendicare will provide quality care.

Extendicare nursing homes have been cited repeatedly in Washington for providing inferior care that is in violation of residents’ rights. The nursing home lawsuit claims that the facilities are forced to operate with such tight budgets that residents are prevented from receiving the care and attention they are paying for.

Extendicare REIT is one of the largest providers of long-term and short-term care facilities in North America, with about 30,300 residents. On August 28, 2008, the publicly traded REIT issued a press release to address the nursing home class action suit.

According to Extendicare, the allegations in the nursing home lawsuit are “false and misleading,” and they indicate that they intend to “vigorously defend against the lawsuit in court.”

Similar nursing home class action lawsuits have been filed in California against facility operators in that state. Many of those cases settled before the allegations were heard in trial.