In September 2005, the Los Angeles District Office of the EEOC and Mexican American Legal Defense and Educational Fund brought this lawsuit against healthcare providers Royal Wood Care Center LLC, Fountain View Subacute and Nursing Center LLC, Fountain View Inc., Skilled Healthcare LLC (doing business as Royalwood Care Center), Fountain View Holdings Inc., Fountain View Management Inc., Fountain View Subacute Nursing Center Inc., Fountain View Therapy Services Inc., The Royalwood Convalescent Hospital Inc., Skilled Healthcare Group Inc., Summit Care Corporation, an Summit Care Pharmacy, Inc. in the U.S. District Court for the Central District of California alleging discrimination on the basis of national origin, Hispanic, in violation of Title VII of the Civil Rights Act of 1964. We do not have a copy of the complaint; therefore, the exact allegations are unknown. However, it appears from the judicial orders that the complainants alleged the defendants discriminated against Hispanic individuals in the compensation, terms, conditions and privileges of their employment based on their Hispanic national origin, primarily by requiring on English be spoken on the premises.

The lawsuit had not concluded at the time the case was collected in April 22, 2008. Following the defendants' filing for bankruptcy, discovery, and a partially successful motion for summary judgment by the defendants, the case was set for a scheduling conference on March 25, 2008 to confer on a final discovery plan.

David Friedman - 05/27/2008


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