California nursing home operator Country Villa Health Services, the target of a number of pending class-action lawsuits, has filed for chapter 11 protection, the Wall Street Journal reported today. The company, which operates 19 nursing homes and assisted living centers in Southern California, sought chapter 11 protection on Tuesday along with more than a dozen of its health care affiliates in bankruptcy court. Chief Executive Stephen Reissman said Wednesday that while the business has been facing cash flow pressures in recent months, its legal issues were the primary cause of the chapter 11 filing. "The dagger in the heart is that we have been overwhelmed by a wave of class-action lawsuits," said Reissman.
