Lawsuit Filed on Behalf of Senior Citizens Against High End Campus Retirement Village for "Up-Streaming" $190 Million
A retired Nobel Prize winner, doctor, World War II journalist and a unique collection of accomplished South Bay senior citizens filed a class action complaint today in federal court on behalf of the 500 fellow residents of the Vi-Palo Alto, a Continuing Care Retirement Community (CCRC). The facility is located on Stanford land. “These senior citizens were promised financial security. Instead, their money was funneled out of state,” said Niall McCarthy, an attorney for the plaintiffs. The lawsuit is believed to the first of its kind in the Bay Area challenging a CCRC’s financial practices. The complaint alleges that $190 million dollars was “up-streamed” from the Palo Alto facility to its corporate parent in Chicago, thus leaving the senior citizen residents financially vulnerable. Those funds were to be returned to the senior citizens when they moved out, or returned to their families when they passed away. The complaint alleges that the Chicago company has refused to return the money to Palo Alto.
“The plaintiffs in this case entrusted hundreds of millions of dollars to the Vi-Palo Alto. As we stated in the complaint, residents only recently learned that the cash reserves were nonexistent” said Anne Marie Murphy, another lawyer for the plaintiffs.