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Beverly settles lawsuit with shareholders
LTC Liability Monitor, October 7, 2004
Nursing home operator Beverly Enterprises Inc. will be stepping up its corporate compliance efforts and will pay $375,000 in plaintiffs' attorney fees as part of a lawsuit settlement to shareholders, the Arkansas Democrat-Gazette reported.
The settlement requires the Fort Smith, AR-based nursing home owner and operator to annually document an evaluation of its chief executive and board of directors, increase auditing efforts, and increase compliance education for top executives.
Beverly spokesperson Blair Jackson called the lawsuit frivolous, as many of these practices are required by the Sarbanes-Oxley Act of 2002, and are already up and running in the organization.
Shareholders sued the company in response to a 2000 Medicare fraud lawsuit, which Beverly settled with federal prosecutors for $175 million, the Democrat-Gazette reported.
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