Professional Negligence Law Reporter
Nursing Home
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Settlement for alleged substandard nursing home care
November/December 2025Michigan Attorney General Dana Nessel announced a $4.5 million settlement agreement with six Detroit-area nursing homes and their corporate owners, Villa Financial Services LLC and Villa Olympia Investment LLC. The settlement arose out of allegations the nursing home entities accepted taxpayer funds while providing grossly substandard care to residents.
The suit alleged insufficient staffing, failure to prevent and treat infections and falls, improper toileting, and failure to prevent pressure ulcers. The defendants denied the allegations.
Under the settlement agreement, Villa will pay the United States approximately $3.41 million and pay the state of Michigan over $1.08 million. Villa will also enter into a five-year quality of care corporate integrity agreement with the U.S. Department of Health and Human Services, which will require an independent quality monitor to review the delivery of care.
Citation: In re: Detroit Nursing Homes, Michigan Dep’t Attorney General, July 2, 2025.
Plaintiff counsel: Dana Nessel, Lansing, Mich.
