June 2017 Fraud Class Action Against Sunrise Senior Living Lands in District Court in CA

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A proposed class action lawsuit filed in June 2017 against Sunrise Senior Living, LLC has been removed to district court for the Northern District of California. From the lawsuit:

“[Sunrise] has engaged in a scheme to defraud seniors, persons with disabilities, and their family members at its assisted living facilities in California by falsely representing to all residents in its admission contracts that each resident will be provided the care services (through facility staff) that the resident needs as determined by a resident assessment conducted by facility personnel. This is false and misleading because Sunrise does not use the results generated by its resident assessment system to determine or provide staffing at its facilities. Sunrise conceals and fails to disclose that, as a matter of corporate policy, Sunrise sets facility staffing per shift based on pre-determined labor budgets that remain static throughout the year despite any increases in aggregated resident needs as determined by resident assessments.”

The plaintiffs, successors in interest to the estates of two deceased individuals, argue Sunrise Senior Living’s staffing system, reportedly rooted solely in budget considerations and desired profit margins, effectively precludes the facility from providing the level of care it promises. The lawsuit alleges that Sunrise Senior Living dupes residents and their family members into paying large new resident and monthly fees “for a system that Sunrise misrepresents will result in comprehensive resident needs assessments and the staff necessary to provide the promised care." 

The notice of removal, as well as the plaintiffs’ original complaint, can be read below.