Judge in nursing home bankruptcy case gives families fresh hope of compensation for injuries, deaths

TL;DR

A bankruptcy judge blocked an attempt by Genesis HealthCare's primary investor, Joel Landau, to avoid settlement payments and legal liability in lawsuits concerning patient harm.
Genesis HealthCare filed for Chapter 11 bankruptcy and proposed protecting Landau from legal liability as part of an asset sale.
The judge refused to approve an asset sale that included legal releases for Landau and a private equity associate, citing concerns about Landau's good faith and irregularities in the auction process.
Families of former residents who have not received promised settlement payments expressed encouragement by the judge's decision.
A new auction for Genesis's assets is expected to occur in January, with Landau's company intending to bid again without seeking liability releases.

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