Elder Care Operator and Plaintiff Attorney Announce Unprecedented Settlement Agreement...

Elder Care Operator and Plaintiff Attorney Announce Unprecedented Settlement
Agreement in Class Action Lawsuit

California Suit Settled; Oregon Suit To Settle

LOS ANGELES, Jan. 25 /PRNewswire-USNewswire/ -- An unprecedented move by
residential elder care operator Sunwest Management was made recently when it
came to the table to settle two class action lawsuits, one in California (Case
#07CC00005), which was filed Dec. 21, 2007 in Orange County Superior Court,
and one in Oregon (Case #0703-03248), which has received preliminary approval
by the Multnomah County Circuit Court and should receive final approval in
February 2008.

"I have handled hundreds of elder abuse cases, and never before have I seen a
company like Sunwest take a good hard look at itself and willingly come to the
table prepared to take responsibility for its actions and to make changes to
ensure its residents are given the best possible care it can give them," says
Long Beach, Calif., plaintiff attorney Stephen M. Garcia of The Garcia Law
Firm. "Most of these companies run and hide so they can continue to profit
unlawfully from the pain and suffering of our vulnerable elders. I believe
Sunwest is starting a new chapter today."

In a rare break from tradition among elder care facilities, Sunwest Management
is not requiring that the settlements be kept confidential. Though the company
is not admitting to the specific allegations by settling the cases, the
litigation resulted in revealing areas needed to be improved.

The California action settled for $4.5 million, and the Oregon suit settled
for $1 million. Sunwest is compensating the plaintiffs in each case with per
diem compensation for days spent in a Sunwest "community" during the specified
time period. In California, this time frame is Jan. 15, 2003 through Jan. 15,
2007. In Oregon, the range is March 22, 2006 through March 22, 2007.

In the settlements, Sunwest also states that any money not claimed will be
used for its facilities and for services for its residents. The company is
agreeing to the appointment of an independent monitor who will undertake
quarterly inspections of select Sunwest facilities. In order to ensure the
credibility of the monitor's independence, Sunwest has chosen to abdicate any
involvement in the selection of the monitor, who will be selected by plaintiff
attorney Stephen M. Garcia of The Garcia Law Firm.

"Sunwest Management cares about its residents," says Sunwest attorney Timothy
R. Graves of Lewis Brisbois Bisgaard & Smith. "After a thorough
self-assessment, the company decided that the best way it could demonstrate
its concern for each and every resident whose care is entrusted to them was to
spend company money in improving residential care rather than spending that
same money in litigation."

Sunwest Management, headquartered in Salem, Oregon, operates approximately 250
elder care facilities nationwide. It is one of the leading elder care
management and operators of such facilities in the country.

Each of the class action complaints alleged that Sunwest Management, Inc., its
directors, and the approximately 16 residential elder care facilities in the
state of California and the more than 50 facilities in Oregon that it owns,
operates or manages, failed to comply with applicable laws and regulations
governing the operation of residential care facilities for the elderly,
resulting in the defendants receiving multiple citations of deficiencies from
the California Department of Social Services and the Oregon Department of
Human Services, respectively.

The lawsuits alleged that Sunwest and its facilities deliberately understaffed
its "communities" by forcing each facility to operate under a budget, approved
and directed by Sunwest Management and the directors of the individual
facilities, that would increase business profits by charging for services that
were not provided, such as adequately staffing the residential care facility
as it advertises that it does.

"This settlement demonstrates how our civil justice system can spur meaningful
social change," says Garcia. "The residents will benefit from safe,
specialized care at a Sunwest facility, which is ensured by an independent
monitor. Moreover, Sunwest Management has the opportunity to become a
nationwide showpiece among elder care facilities known for offering excellent
care to its residents while it makes a fair profit for the company."

CONTACT: Geri Wilson
The Jonathan Group
626-403-6741
gerij9@yahoo.com

SOURCE The Garcia Law Firm

Geri Wilson, The Jonathan Group, +1-626-403-6741, +1-626-487-2235 (cell),
gerij9@yahoo.com, for the Garcia Law Firm