USDC, Northern District of California
CPM is pursuing a class action complaint on behalf of the 500 residents of the Vi-Palo Alto, a Continuing Care Retirement Community (CCRC). Among CPM’s clients (the proposed class representatives) are a retired Nobel Prize winner, a doctor, a World War II journalist, and a unique collection of accomplished South Bay senior citizens. The facility is located on Stanford land. 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.
