State and federal officials are negotiating a settlement in a false claims case that could cost a western New York nursing home operator $9 million.
The defendants in the complaint filed under the state and federal False Claims Acts are Safire Rehabilitation of Northtowns LLC, Safire Rehabilitation of Southtowns LLC, and Rehab Alternatives PLLC.
Safire Northtowns owns one facility with 100 beds in the Buffalo area, while Safire Southtowns owns two, each with 120 beds.
Former Safire employee Laura Ciavarella filed a whistleblower lawsuit in December 2020. The U.S. Attorney and the state of New York filed a joint notice of intervention in March.
United States District Court Chief Judge Elizabeth A. Wolford directed the state and federal government attorneys to serve their complaints on the defendants by June 16.
In a letter sent to Wolford Wednesday officials of the U.S. Attorney’s Office asked for more time to work out a deal with the defendants.
“Recently, the United States and the state of New York have agreed in principle, subject to approvals by the United States Attorney and the New York Attorney General, to resolve the United States’ and state of New York’s allegations against defendants for $9 million,” wrote Michael DiGiacomo, United States Attorney for the Western District of New York.
“While the parties are committed to working in good faith to expeditiously resolve this matter, we anticipate that it may take beyond June 16, 2026, to finalize settlement...
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