After months of negotiations, the Rogue Valley Manor (RVM) Residents Steering Committee announced today that they have accepted a settlement offered by Pacific Retirement Services (PRS) enabling the parties to avoid class action litigation.
The RVM residents are pleased with the settlement which gives them an independent RVM Board of Directors, including two residents as voting members of the Board, limits on PRS’ ability to remove directors from the Board, and a cap on PRS management fees for the next three years. Additionally, $400,000 in monthly fees will be credited back to residents in 2013. Through the settlement, PRS also acknowledges it has a fiduciary duty to RVM.
“We couldn’t be more pleased with the outcome,” says Don White, Acting Chair of the Steering Committee. “PRS has agreed to a fundamental change in its relationship with RVM which will pay dividends for the current and future generations of RVM residents.”
Shannon Armstrong, attorney for the residents, says that this agreement is a huge victory for her clients. “The residents will now have a significant role in the management of their community and confidence in RVM’s future.”
RVM has long been considered one of the nation’s finest continuing care retirement communities (CCRC). Founded 51 years ago, the community attracts residents from all over the United States.