Five Star sues Sunrise over insurance charges
Five Star alleges that Sunrise insurance programs made excessive charges to senior-living communities that were being managed by Sunrise for Five Star between 2003 and 2006. Sunrise has admitted to "accounting irregularities" within the company during those years, and also said that it overcharged managed senior living communities which participated in its insurance programs. Five Star wants an accounting of these overpayments and payment.
Sunrise owes the company more than $10 million in reimbursements for the overcharging, according to Five Star. Sunrise has denied that it owes any money to Five Star. Sunrise's late filing of earnings reports nearly led to its de-listing from the New York Stock Exchange earlier this year (McKnight's, 3/25).