JPML Asked to Consolidate N.Y. Nursing Home ERISA Embezzlement Cases

WASHINGTON, D.C. — A group of nursing home employees have asked the Judicial Panel on Multidistrict Litigation to create a federal docket for cases accusing nursing home operators and others of misappropriating employee benefit plan funds, leading to COVID-19 unpreparedness in the facilities.

According to the March 18 motion, the litigation consists of nine class actions pending in New York federal courts in which nursing home operators are accused of embezzling from the ERISA plans that were underwritten by Oriska Insurance Co.

The intervenor plaintiffs allege the employer defendants’ failure to provide such benefits “is the direct and proximate …