SKH Shares Spike On Lawsuit Settlement News

Shares of Skilled Healthcare Group Inc SKH jumped more than 20% on Wednesday, after the company announced that it had negotiated a lawsuit settlement much below the jury verdict in July. The nursing home operator said it had negotiated the settlement related to staffing levels at $50 million, as compared to the verdict of $677 million awarded by the jury in July. The lawsuit alleged that SKH violated safety codes and did not have sufficient staff. Skilled Healthcare said that it will pay the settlement amount through its revolving credit line, while agreeing to provide reports and information to a monitor for a couple of years. SKH admitted no wrongdoing. The settlement is yet to be approved by a California court. Shares of SKH surged past 20% to $4.24 at 10:48 am on Wednesday. Read more from Benzinga's Company news.