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Court tosses Golden Living lawsuit

Judges: ‘Puffery’ not the same as false advertising

HARRISBURG — A state court is dismissing the Pennsylvania attorney general’s office lawsuit accusing a nursing home operator of failing to meet residents’ most basic human needs in some homes.

A Commonwealth Court panel threw out the case, saying the state’s complaints about Golden Living centers either lacked specifics or targeted marketing materials that aren’t tantamount to false advertising.

Rather, the judges say Golden Living centers were using “puffery,” or subjective marketing, which is different than false advertising and can’t form the basis of a false advertising lawsuit.

The state argued that Golden LivingCenter’s care failed to live up to its marketing promises, but the Commonwealth Court repeatedly found such claims were subjective in nature and did not amount to fraud.

The court’s decision states, “The law dictates that if the Marketing Statements were ‘offered and understood as an expression of the seller’s opinion only, which is to be discounted as such by the buyer [, and on which no reasonable person would rely],’ they are puffery, and may not form the basis for a (Unfair Trade Practices and Consumer Protection Law) action.”

The lawsuit was filed in 2015 and sought payback of Medicaid payments to certain Golden Living centers. But the judges say the state Department of Human Services is tasked with settling Medicaid billing disputes.

In the original suit, Attorney General Kathleen Kane alleged understaffing led to poor care at 14 GoldenLiving Center nursing homes, including Hillview in Altoona.

In a news release, Kane’s office alleged residents were left thirsty, hungry, dirty, unkempt and sometimes unable to summon anyone to help meet their most basic needs, such as going to the bathroom. The state further alleged that the company engaged in deceptive business practices and failed to provide advertised services.

Golden LivingCenter denied the allegations at the time, stating the suit was baseless and without merit.

The attorney general’s office wouldn’t say Monday whether it will appeal.

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