Shares of Skilled Healthcare Group Inc. bounced back Thursday, a day after investors were spooked by a big jury verdict against the Foothill Ranch-based nursing home operator.
Skilled’s shares closed up 54% to a market value of $88 million.
The company’s shares rose as some investors likely saw Wednesday’s selloff as an overreaction.
Skilled fell 75% in Wednesday trading after a Northern California jury decided the company should pay $671 million in damages for providing inadequate staffing at its California facilities.
The company, which operates 100 nursing homes in California and other states, has said it intends to “vigorously pursue various post-trial motions, as well as an appeal if necessary.”
Skilled, which has yearly sales of about $760 million, could be potentially crippled by the jury award.
It has said its insurance won’t cover the potential damages since its professional liability coverage is exhausted for the policy year covering the case.
