Democratic Lawmakers Say Genesis Insider Sale May Abuse Bankruptcy System

Democratic lawmakers asked the Justice Department to probe the proposed bankruptcy sale of nursing home chain Genesis Healthcare to insiders, saying it may amount to an abuse of chapter 11 aimed at wiping away liabilities to patients and families for alleged negligence.

Sens. Elizabeth Warren of Massachusetts and Richard Blumenthal of Connecticut and Rep. Maggie Goodlander of New Hampshire said in a Monday letter that Genesis has proposed to sell itself out of bankruptcy to some of the same individuals who helmed the company as it accumulated lawsuits for allegedly mistreating patients.

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