Skilled Healthcare (SKH) Shares Jump 25% after News Of Settlement Discussions

August 31, 2010, 12:02 PM

Shares of Skilled Healthcare Group Inc.’s (NYSE: SKH) stock surged on Tuesday after it said it was in talks of a settlement over alleged safety violations.

Shares of Skilled Healthcare jumped 62 cents, or 25.1%, to $3.09 after the company said in a statement that settlement discussions continue as court proceedings in California were postponed until Thursday Sept. 2.

Yesterday Humboldt County Superior Court Judge Bruce Watson denied Skilled’s motion for a mistrial over a July jury verdict that found Skilled liable for $677 million in damages for alleged mismanagement of 22 California nursing facilities.

Investor Analysts expect there to be a settlement because if Skilled Healthcare is forced to file bankruptcy, it will be a long time before the plaintiffs collect any money.

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Tags: lawsuit, NYSE, skilled healthcare