A newly filed lawsuit has accused the former operators of New Jersey-based nursing home chain Skyline Health Care of stealing more than $2 million from employees.
The complaint was filed by five Skyline workers from facilities in South Dakota, Kansas, Nebraska and Arkansas. The defendants are Joseph and Rosie Schwartz and the nursing home chain in U.S. District Court last week, the Associated Press reported.
Employees allege they didn’t have health insurance, despite paying for it from their paychecks. They estimate that more than $2 million was stolen from them.
Overall, the lawsuit accuses the duo of racketeering, racketeering conspiracy, negligence and fraud.
The suit is seeking class-action status and estimates more than 1,000 employees were affected by the alleged actions, and unspecified compensatory and punitive damages.
The chain had operated more than 100 nursing homes through subsidiary companies. It faced troubles in several states in recent years, with many facilities being taken over, after the parent company was unable to pay vendors.
