This is truly a "cautionary tale" about a Nursing
Home that was held criminally liable for the acts of an employees.
The Court held that a Limited Liability Company ("LLC") can be criminally liable and lose its license -- for simply being aware of chronic overstaffing -- after its employees were found guilty of falsifying records as to a patient's care.
But this could happen to any
business where chronic understaffing, perhaps more common in this
economic climate, allegedly results in employees falsifying records that
relate to care or safety.
This is why this decision is a "cautionary tale."
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Published In: Business Organization Updates, Criminal Law Updates, Insurance Updates
Reference Info:Decision | State, 2nd Circuit, New York | United States
DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
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