Settlement Proposes Nearly $9 Million for Louisiana Nursing Home Residents Held in Warehouse During Hurricane

NEW ORLEANS—A number of elderly individuals from seven nursing homes in Louisiana, who were relocated to a cramped, poorly prepared warehouse during Hurricane Ida in 2021, are now being offered a portion of a nearly $9 million settlement following a lawsuit.

Retired state judge William “Rusty” Knight informed The Times-Picayune of New Orleans that letters outlining the proposed settlement have been sent to all 427 former residents who initiated legal claims. Knight noted that the settlement amounts will vary depending on each patient’s unique situation.

Those who do not dispute the offered amounts should expect payment in a few weeks. A hearing for anyone wishing to contest the settlement is scheduled for January.

“The journey to this point has taken longer than we had hoped,” Knight remarked. “Honestly, nobody is receiving what they rightfully deserve because the funds are insufficient.”

Bob Dean Jr., 70, the owner of seven nursing homes in New Orleans and southeast Louisiana, relocated hundreds of residents to a building in Independence, approximately 70 miles northwest of New Orleans, as Hurricane Ida approached.

Reports indicated that conditions in the warehouse worsened significantly after the storm struck on August 29, 2021. Authorities discovered ill and elderly residents on wet mattresses, some crying for assistance, and others lying in their own waste. Civil lawsuits against Dean’s company allege that the ceiling leaked, toilets overflowed in the sweltering warehouse, and there was inadequate food and water supply.

In the days following the storm, state officials reported that seven evacuees had died, five of whom were classified as victims of the storm.

After Dean’s arrest on state charges in June 2022, he had already lost state licenses and federal funding for his nursing homes. In July, he pleaded no contest to 15 criminal charges and received a sentence of three years of probation, along with a restitution payment of $258,000 and a penalty exceeding $1 million.

Last month, Dean reached an agreement to pay $8.2 million to the federal government to resolve allegations of misappropriating assets and income from four nursing homes whose loans were insured by the Federal Housing Administration. Prosecutors allege that he diverted nursing home funds into his personal accounts to purchase antiques, firearms, and vehicles.

Dean is also facing civil lawsuits from 427 of the 843 residents who were evacuated to Independence or their surviving family members. Many plaintiffs and their counsel suspect that Dean may have been concealing additional assets.

“There is no real justice for what my clients have suffered,” attorney Matthew Hemmer, who represents numerous victims from the nursing homes, shared with WVUE-TV.

Knight mentioned that he is aware of 165 former residents of Dean’s who have passed away since the evacuation, and he anticipates more deaths will come to light as responses to the settlement offers are received.