Shares of Foothill Ranch-based Skilled Healthcare Group Inc.’s stock shot up after a court hearing set for Tuesday was pushed back as the company continues talks on settling a potentially crippling lawsuit it lost in July.
The nursing home company’s shares closed up nearly 40% to a market value of nearly $130 million.
News of the court delay and ongoing talks came a day after Humboldt County Superior Court Judge Bruce Watson denied Skilled’s motion for a mistrial over a jury verdict that found Skilled liable for $677 million in damages for alleged mismanagement of 22 California nursing facilities.
Skilled said late Monday that court proceedings in the case that were scheduled to start Tuesday were postponed until Thursday. The company previously said it was in talks with plaintiffs before the jury award is confirmed.
Analysts have said they expect a settlement to be a likely outcome because if Skilled is forced into bankruptcy, it could be a long time before the plaintiffs could see payment.