In July 2025, Genesis HealthCare, once one of the largest nursing home chains in the country, filed for Chapter 11 bankruptcy in Texas. Court filings show the company reported more than $2.3 billion in total debt and at least $259 million owed to current and former residents and their families for injury and wrongful death claims.

Recent reporting by KFF Health News and CBS News details how Genesis repeatedly delayed paying settlements in nursing home abuse and neglect cases, then sought bankruptcy protection while tens of millions of dollars remained unpaid.

McEldrew Purtell represents one of the families highlighted in that coverage. Attorney Ian Norris serves as counsel for Greg Hunt, whose mother, Nancy Hunt, died after suffering a severe foot injury while in a Genesis facility in Pennsylvania. Their case is now directly affected by Genesis’ bankruptcy proceedings, which have paused payment of a substantial settlement the family fought for in state court.

Below, we break down what Genesis’ bankruptcy involves, how it is impacting victims and families, and what you can do if you or a loved one has a claim connected to a Genesis facility or another nursing home operator in financial distress.

Who is Genesis HealthCare and why is it in bankruptcy?

Genesis HealthCare is a private-equity–backed nursing home and rehabilitation chain that, before its bankruptcy filing, operated roughly 165–175 skilled nursing and assisted living facilities across 18 states, with a large footprint in Pennsylvania, New Mexico, New Jersey, and several New England states.

According to court filings and public reports:

• Genesis filed for Chapter 11 bankruptcy in the Northern District of Texas on July 9, 2025.
• The company reported:
  • Over $2.3 billion in debt.
  • Approximately $259 million owed in personal-injury and wrongful-death settlements and claims.
  • More than 200 lawsuits involving allegations of neglect, serious injury, and death.
• Many of these cases involve issues such as falls, bedsores, infections, medication errors, and failures to respond to obvious signs of medical crisis.

At the same time it seeks to shed debt, Genesis has pursued a sale of its facilities to an “insider” buyer affiliated with its private equity ownership group. That proposed deal has drawn sharp criticism from patient advocates, state officials, and members of Congress, who argue the plan could significantly reduce what families with injury and wrongful death claims are able to recover.

What the CBS / KFF investigation revealed about unpaid settlements

The CBS News / KFF Health News investigation examined dozens of Genesis cases across the country. Key findings include:

• Structured settlements with long delays: Genesis often agreed to pay settlements in installments, but pushed the first payment out months, sometimes a year or more, after the agreement was signed.
• Large number of unpaid or partially paid deals: A review of 155 settlement agreements showed Genesis had agreed to pay $58 million but still owed roughly $41 million at the time of its bankruptcy filing. In many cases, no payments had been made at all.
• Use of appeals and procedural maneuvers: In several lawsuits, Genesis appealed routine court decisions, adding years of delay before families saw any resolution. Some judges grew increasingly frustrated as payments were missed or postponed while Genesis continued to operate.
• Confidentiality clauses: Many settlement agreements included gag clauses preventing families from talking about what happened. Bankruptcy filings and investigative reporting have now brought some of those stories to light.

One of the cases discussed involves Greg Hunt, whose mother, Nancy Hunt, developed a catastrophic foot injury while in a Genesis facility in Pennsylvania. Genesis denied wrongdoing but ultimately agreed to a multimillion-dollar settlement. According to court filings cited in the CBS report, Genesis later stopped making required payments and asked a Pennsylvania judge for more time, claiming “unforeseen and exigent financial challenges.” The judge ordered Genesis to pay, but the order was stayed once Genesis filed for bankruptcy.

Attorney Ian Norris of McEldrew Purtell represents Mr. Hunt and his family in that case and is continuing to advocate for their rights in the face of Genesis’ bankruptcy strategy.

How bankruptcy changes the rules for nursing home abuse and neglect cases

When a company like Genesis files for Chapter 11:

• All injury and wrongful death lawsuits are automatically paused (the “automatic stay”). Families with pending lawsuits or even signed settlements can no longer pursue payment through the normal court system. Everything is pulled into one bankruptcy proceeding.
• Families become “unsecured creditors.” Personal-injury claimants usually stand behind secured creditors (like banks and some tax authorities) in the payment line. That means they may receive only a fraction of what they are owed, or nothing at all, depending on the final plan approved.
• The company may seek releases for insiders and affiliates. Some proposed plans would not only reorganize the company’s debt, but also shield owners, investors, and related entities from future lawsuits, even if they are alleged to have contributed to unsafe staffing, cost-cutting, and poor care.

In Genesis’ case, public reporting indicates:

• The company has selected an insider bid from an entity affiliated with its current private equity owner as the winner in its bankruptcy auction.
• Lawmakers and the official creditors’ committee have raised concerns that this deal could dramatically reduce payouts for families while allowing the same ownership to retain control of valuable assets.

For families, the result is deeply unsettling: after years of litigation, depositions, and often heartbreaking testimony, they face the possibility that Genesis will pay only pennies on the dollar or that their claim will be wiped out altogether while continuing to operate under new ownership.

McEldrew Purtell’s role in the Genesis litigation

McEldrew Purtell has long represented families in nursing home abuse and neglect, medical malpractice, and wrongful death cases throughout Pennsylvania and across the country.

In the Genesis bankruptcy context:

• Attorney Ian Norris represents the family of Nancy Hunt, whose case is one of the examples highlighted by CBS News and KFF Health News.
• Our firm is closely monitoring the Genesis proceedings, collaborating with co-counsel and other advocates to protect the rights of residents and their families.
• We are focused on ensuring that:
  • Families have a clear understanding of how bankruptcy may affect their case.
  • Settlement agreements and judgments are properly documented and asserted in the bankruptcy process.
  • Victims’ voices are heard as courts consider any sale, reorganization plan, or releases for owners and insiders.

We cannot change what happened to a loved one, but we can fight to prevent corporate defendants from using delay tactics and complex financial maneuvers to escape accountability.

What to do if you or a loved one has a claim against Genesis or another nursing home

If your family has a claim involving a Genesis facility or any nursing home operator that has filed for, or may be heading toward, bankruptcy there are important steps you can take:

1. Gather and organize documentation

Collect and keep copies of:

• Admission agreements and care plans
• Incident reports, “fall logs,” or internal notes
• Hospital and medical records, including imaging and lab results
• Emails, texts, or notes from conversations with facility staff
• Any settlement agreements, correspondence, or court orders

These records are critical both for traditional litigation and for filing a proper claim in bankruptcy court.

2. Confirm your claim status in the bankruptcy case

In a large corporate bankruptcy, failing to file a proof of claim by the court’s deadline can jeopardize your rights. Families should:

• Determine whether a proof of claim has already been filed on their behalf.
• Review any claim notices or bar date orders they receive by mail.
• Speak with counsel as soon as possible about upcoming deadlines.

3. Be cautious about direct communications with the company or insurers

Genesis or its insurers may reach out to families with:

• New forms or “updates” related to the bankruptcy
• Requests to sign releases or modified agreements
• Offers that appear to “simplify” or “streamline” the claim

Before signing anything or agreeing to new terms, it is wise to have an experienced nursing home abuse lawyer review the documents and explain how they affect your rights in and outside of bankruptcy.

4. Talk with an attorney experienced in nursing home and bankruptcy-related litigation

Cases involving nursing home negligence are complex even before bankruptcy is involved. Once a defendant is in Chapter 11, the landscape changes significantly:

• Different courts and judges become involved.
• Claim value and payment may be governed by a global plan, not just facts of your individual case.
• There may be opportunities to object to unfair plan terms or advocate for a larger victim-compensation fund but only if your rights are properly preserved.

An attorney who understands both nursing home liability and the bankruptcy process can help your family:

• Understand where your case stands today
• Evaluate your options and likely recovery scenarios
• Decide whether and how to participate in any objections, committees, or settlement structures

How McEldrew Purtell can help

If your loved one was injured, neglected, or died in a Genesis HealthCare facility or in another nursing home that is in financial distress or bankruptcy you do not have to navigate this alone.

Our team at McEldrew Purtell can:

• Review your loved one’s medical records, facility history, and any existing settlement or lawsuit
• Explain how Genesis’ bankruptcy may affect your case and what deadlines apply
• Coordinate with co-counsel nationwide when appropriate to strengthen your position
• Fight for the fullest possible recovery while pushing for transparency and accountability from corporate owners and operators

Call McEldrew Purtell at (215) 545-8800 or submit a request through our online Free Consultation form for a no-cost, confidential case review.

We’re here to help you understand your options, protect your family’s rights, and pursue justice, even when powerful nursing home corporations try to use bankruptcy to walk away from the harm they’ve caused.

Recent national coverage of the Genesis bankruptcy:

• Reuters: https://www.reuters.com/legal/litigation/bankrupt-genesis-health-picks-insider-bid-its-nursing-homes-2025-12-02/
• Wall Street Journal: https://www.wsj.com/articles/u-s-senators-say-genesis-insider-sale-may-abuse-bankruptcy-system-d468e098
• Wall Street Journal: https://www.wsj.com/articles/genesis-claimants-seek-court-examiner-to-review-winning-bidder-selection-ac3f955e
• CBS News: https://www.cbsnews.com/news/genesis-nursing-home-bankruptcy-settlements/