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A recent Albuquerque Journal article has brought renewed attention to a deeply troubling situation involving Genesis HealthCare (Genesis), one of the largest nursing home chains in the country. The article, which features insight and commentary from Attorney Dusti Harvey and Attorney Jennifer Foote of Harvey, Foote & Baker Law Firm, reveals how Genesis is attempting to avoid honoring dozens of settlement obligations — originating from lawsuits related to alleged nursing home abuse, neglect, and other forms of elder abuse — through bankruptcy proceedings in Texas. If the company gets its way, it could dodge paying hundreds of millions of dollars owed to families through agreed-upon and signed settlements.
Settlements Reached but Not Paid
One of the cases discussed involves the family of Nancy Hunt, a Pennsylvania nursing home resident who arrived at a hospital in such critical condition that authorities were alerted. She died from gangrene-related health complications. Her son later reached a $3.5 million settlement with Genesis. Court records cited in the article show that most of that settlement has not been paid, and may never be, depending on the outcome of Genesis’ bankruptcy filing.
According to the reporting, Genesis has acknowledged facing significant legal exposure related to resident injuries and deaths. When it filed for bankruptcy in Dallas in July, the company estimated its liability for nearly a thousand settled and pending cases at approximately $259 million. A review of settlement agreements revealed that Genesis had negotiated delayed and installment-based payments in many cases, often postponing payment for months or even years.
As a result, many families who had already resolved their cases, based on promises Genesis made, are now technically considered “unsecured creditors” in bankruptcy court, standing alongside financial institutions, lenders, and other secured interests that are owed money from Genesis.
A Pattern of Delay
The article features commentary from Attorney Jennifer Foote and Attorney Dusti Harvey, who have represented multiple families in lawsuits against Genesis. One such case was brought by Erin Pearson after her father, James Sanderson, died from a bowel obstruction and sepsis while staying at the memory care unit of Genesis-affiliated Bear Canyon Rehabilitation Center in Albuquerque. For years, Harvey, Foote & Baker Law Firm fought back and forth with Genesis, including to stop one-sided forced arbitration, and secured a $500,000 settlement, which the nursing home chain has not yet honored.
Attorney Foote explained that Genesis frequently relied on appeals that were rarely successful, creating long delays before cases could move forward. Attorney Harvey noted that installment-based settlements became increasingly common, with payments often scheduled to begin far into the future, much farther than what an attorney and their client would see in most other civil lawsuit settlements.
Other legal professionals representing Genesis claimants have expressed similar concerns, including suspicions that the company never intended to fully honor certain settlement agreements. Instead, they speculate that Genesis had recently begun choosing start dates for settlement payments that it knew would occur after it had intended to file for bankruptcy.
Genesis has denied wrongdoing in all cases and stated that it remains focused on providing quality care, even while it is in the middle of a bankruptcy filing. However, the article from the Albuquerque Journal points to federal ratings, fines, and inspection reports showing ongoing regulatory issues at many Genesis-affiliated facilities over the years.
Our Constant Commitment to Our Clients
For families who trusted the legal system to hold a nursing home accountable, Genesis’s attempts to use bankruptcy to avoid agreed-upon settlements are understandably upsetting. But it is important to recognize what these cases also demonstrate: Genesis was held legally accountable in courtrooms across the country when judges denied arbitration attempts, and legal professionals like Attorney Foote and Attorney Harvey tenaciously and successfully stood up to this large corporation, time and again.
At Harvey, Foote & Baker Law Firm, we understand how frustrating and painful it is when a defendant uses complex legal maneuvers to delay or avoid payment. But these tactics do not erase the truth of what happened to the people harmed by their negligence or the legitimacy of the claims brought on their behalf. That’s why our legal team is knowledgeable and ready to help in every part of a lawsuit, including appeals, enforcement actions, and sometimes, bankruptcy proceedings.
We remain committed to doing everything legally possible to protect our clients’ interests and to pursue the compensation they are owed. These cases matter, not only for the families involved, but for accountability in an industry entrusted with the care of our elderly loved ones.
While the Genesis bankruptcy raises serious concerns, it should not deter families from speaking up and seeking legal help. Lawsuits can expose dangerous conditions, force regulatory scrutiny, and even prevent future harm. Even when defendants attempt to delay or evade responsibility, the pursuit of justice has a real impact, and we will always continue to stand with families, no matter how complicated the process becomes. Although there may not be any relief, or only limited relief, for families with Genesis claims prior to the bankruptcy, claims from Genesis or their successor company that arose after July 9, 2025, may be pursued.
If you would like our legal services after a loved one was abused or neglected at a nursing home in New Mexico, you can call (505) 295-2245 or contact us online at any time to schedule a free consultation. We’ve been helping families like yours since 2005, and we’d like to help you, too.