$4.5 Million Settlement Over Substandard Care in Six Michigan 

Nursing Homes Accused of Gross Neglect

When families place loved ones in nursing homes, they do so with the expectation of safety, dignity, and proper medical attention. But for residents of six Michigan nursing homes, those basic expectations were allegedly betrayed. In July 2025, the Michigan Attorney General’s office announced a $4.5 million settlement with the owners of six Detroit-area nursing facilities over allegations of grossly substandard care, exposing deeply troubling conditions that violated both the law and the trust of countless families.

As a nursing home abuse law firm, KBD Attorneys is deeply disturbed by the details of this case. We represent victims of long-term care neglect and elder abuse across the country and fight to hold nursing home owners accountable when profits are prioritized over patient safety. This Michigan case is a powerful reminder that whistleblowers, victims, and their families have legal recourse—and that systemic neglect must never go unchallenged.

Source: CBS Detroit – July 3, 2025

Which Nursing Homes Were Involved?

The six nursing homes involved in the $4.5 million settlement are all owned or operated by Villa Financial Services LLC and Villa Olympia Investment LLC. The facilities include:

• Ambassador

• Father Murray

• Imperial

• Regency

• St. Joseph’s

• Westland

These homes, located throughout the Detroit metropolitan area, were accused of delivering what officials described as “grossly substandard care” while continuing to receive millions in taxpayer funding through Medicare and Medicaid.

What Were the Allegations?

The case originated as a federal whistleblower lawsuit filed by Villa employees who said they witnessed alarming mistreatment and neglect. The lawsuit and subsequent investigation revealed several serious failings in patient care, including:

• Understaffing that made it impossible to provide adequate care

• Failure to prevent falls and infections among vulnerable residents

• Neglect of pressure ulcers (bed sores), a major sign of serious nursing home neglect

• Failure to help residents with toileting, leading to prolonged periods in soiled clothing or bedding

These issues are not just regulatory violations—they can lead to life-threatening complications, long-term psychological harm, and a significant decline in quality of life.

At KBD Attorneys, we’ve seen firsthand the devastating consequences of nursing home neglect. Understaffing is one of the most common causes of serious harm in long-term care facilities. When administrators cut costs by reducing staff, residents suffer from falls, infections, dehydration, and untreated wounds.

How the Government Responded

The Michigan Attorney General’s Health Care Fraud Division, along with the United States Attorney’s Office for the Eastern District of Michigan, led the investigation. These agencies ultimately reached a financial settlement totaling $4.5 million, with $3.4 million going to the U.S. government and $1.08 million to the State of Michigan.

In addition to the monetary penalties, the owners must now comply with a five-year Corporate Integrity Agreement with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). This includes:

• Oversight by an independent quality monitor

• Mandatory compliance evaluations

• A requirement to respond promptly to resident safety concerns

These oversight measures are a step in the right direction—but for victims and families, real accountability includes legal action and justice.

What This Means for Families and Whistleblowers

If you suspect that your loved one is suffering from neglect or abuse in a Michigan nursing home,  this case proves that you are not powerless. The whistleblowers in the Villa case acted courageously, and their decision to speak up triggered meaningful change.

KBD Attorneys proudly represents whistleblowers in healthcare fraud cases and family members in nursing home abuse lawsuits. Whether your loved one developed untreated bedsores, suffered repeated infections, or endured emotional trauma due to poor care, we can help you investigate and pursue claims.

We have extensive experience helping clients in cases involving:

• Neglect-related injuries (e.g., bedsores, infections, and falls)

• Medication errors and failure to treat illness

• Emotional and psychological abuse

• Wrongful death in nursing home settings

• Medicaid and Medicare fraud in elder care facilities

What Is “Grossly Substandard Care”?

In the legal world, “grossly substandard care” is a strong accusation that indicates a pattern of reckless or willful neglect. It goes beyond isolated incidents and refers to a systemic failure to meet the basic standards of care required by law.

Examples include:

• Repeated failure to reposition immobile patients (leading to bedsores)

• Leaving residents in soiled diapers or bedding for hours

• Ignoring obvious signs of illness or injury

• Failing to document or communicate serious changes in a patient’s condition

These failures aren’t just unethical—they can lead to civil and criminal liability. Families who experience this type of treatment have the right to file nursing home abuse claims and potentially recover compensation for their loved one’s pain and suffering.

The Role of a Nursing Home Abuse Attorney

If you believe a nursing home is mistreating your loved one, an experienced nursing home abuse attorney can:

• Investigate patterns of neglect at the facility

• Secure medical records and witness statements

• Work with medical experts to prove violations of care standards

• File legal claims for compensation on behalf of victims and families

• Advocate for systemic change to protect other residents

At KBD Attorneys, our mission is to expose nursing home abuse, secure justice for victims, and hold corporations accountable when they betray the public’s trust.

Michigan Families Deserve Better

This case shines a harsh light on the risks elderly residents face in understaffed, poorly managed nursing homes. But it also highlights the power of legal action and whistleblower courage. Thanks to those who came forward, these six facilities are now under watch—and hopefully, safer for future residents.

If your loved one is in a Michigan nursing home and you’ve seen signs of neglect—unexplained bruises, untreated infections, bed sores, or sudden behavioral changes—don’t wait. Trust your instincts, document everything, and seek legal help.

Contact KBD Attorneys Today

At KBD Attorneys, we stand with nursing home residents and their families. We have helped hundreds of clients fight back against elder abuse, neglect, and fraudulent long-term care providers. With a proven track record in nursing home litigation, our legal team will guide you through every step of your case—from investigation through to settlement or trial.

To learn more, visit our Nursing Home Abuse & Neglect page and contact us to schedule a free, confidential consultation.

Let us help you seek justice for your loved one. When care turns to cruelty, KBD Attorneys is here to fight back.

Source: CBS News Detroit – July 3, 2025