Residents file suit against high-end Palo Alto seniors home
Residents of an upscale Palo Alto residence for seniors on Wednesday were accusing the company that runs the home of misusing their funds.
The 600-page class action lawsuit filed Wednesday alleges the Vi at Palo Alto, a luxury senior residence near Stanford University, is violating contracts with the seniors who live there and taking their money.
Burton Richter is a Nobel laureate and former Stanford physics professor who hoped to enjoy his golden years living at the Vi. He paid an entrance fee of more than one million dollars.
"That contract said they'd pay back 90 percent of what I paid in," Richter told KTVU.
Richter and other residents said they later learned that Vi at Palo Alto was in the red and had sent more than $190 million to its parent company, CC Chicago. The plaintiffs' attorney says residents became alarmed when they inquired about the funds.
"They found out the money had been coming in the front door and going out the back door to Chicago which was hidden from the residents," Anne Marie Murphy, plaintiffs' attorney from the law firm Cotchett, Pitre & McCarthy... (To read the entire article, please click HERE)