Media Contact for Plaintiffs:
Alex Bradley, [email protected], 202-299-1140
Media Contact for Towne Nursing Staff, Inc. and Towne
Pediatric Homecare LLC: [email protected]
Towne Nursing Staff and Towne Pediatric Homecare Reach Proposed Class Settlement with Foreign-Trained Nurses
May 28, 2026 – Today, six Filipino immigrant nurses (who seek to represent a class of other similarly-situated nurses), the nurses’ lawyers (Katz Banks Kumin LLP, Kakalec Law PLLC, and Leung Law PLLC), Towne Nursing Staff, Inc., and Towne Pediatric Homecare LLC (the “Companies”), are pleased to jointly announce that they have reached a proposed settlement to resolve a putative class action lawsuit relating to the Companies’ international nurse recruitment program. As part of the settlement, the parties have agreed that the Companies will (1) pay $1.85 million to settle the alleged damages of approximately 450 settlement class members who were parties to contracts with the Companies between August 13, 2014 and May 26, 2026; (2) forgive any alleged debt arising from an early resignation that occurred on or before December 3, 2025; and (3) only collect agreed upon Actual Direct Costs (as defined by the parties’ agreement) from class member nurses who resign before the end of their contract term without Good Reason (as defined in the parties’ agreement). These commitments (as well as those of the nurses) are all subject to, and will only become effective upon, the Court’s final approval of the proposed settlement.
The lawsuit, Cruz v. Towne Nursing Staff, Inc. et al., Case No. MON-L-002021-26, was filed in the Superior Court of New Jersey by named plaintiffs Jemarie Cruz, Mary Fober Ced, Alvin Javier, Shirley Anne Fajardo, Iñigo P. Espiritu, and Zaena Diamad (“Nurse Representatives”). The Nurse Representatives’ allegations—that the governing contracts require nurses who resigned without Good Reason to pay an unreasonable amount of money for their alleged contractual breach—are detailed in the Complaint filed in the Superior Court.
The parties’ agreement provides both monetary relief and non-monetary changes designed to improve contract terms and protections for nurses. As part of the settlement, the parties have jointly agreed to implement a new template employment contract that includes protections for current and future nurses. The changes aim to provide greater transparency, fairness, and predictability in the nurse recruitment and employment process. There will be clear, itemized disclosure of benefit costs with optional opt-in/opt-out checkboxes for certain expenses.
The settlement remains subject to Court approval. The Companies will not contest preliminary approval of the settlement. If the settlement is preliminarily approved, all settlement class members will receive notice of the settlement. The settlement will become final only if and after the Court grants final approval and any appeals are resolved.
A settlement website has been created at www.TowneNurseSettlement.com which includes this joint statement, and will be updated with more information as the settlement approval process moves forward. Impacted nurses are encouraged to check that website for updates in the coming months.
The Companies made the following statements about the proposed settlement:
The Companies provide vital nursing services for children and adults with complex medical needs, sponsor green cards for nurses and their families, provide relocation support, professional development opportunities, and a range of other resources and benefits. They dispute the allegations in the lawsuit but appreciate the efforts of the Nurse Representatives and their counsel to reach a constructive and mutually beneficial resolution that permits the parties to avoid the time, expense, and uncertainty of further litigation.
The Companies believe the settlement will allow them to focus on supporting their nurses and the patients they serve.
“We are leading the industry by modernizing contracts with our nurses for transparency and fairness,” Towne Pediatric Homecare LLC said in a statement. “We are deeply committed to fostering a supportive family environment where our nurses feel truly valued and cared for as they provide vital at-home services to children who need round-the-clock care. We work hard to ensure our nurses have rewarding careers, with opportunities for growth and development, as they help meet patients’ needs.”
According to a statement from Towne Nursing Staff: “We prioritize and maintain mutual transparency with our operations, which serve as the anchor to our employees’ security and protection during their contract duration. This security allows our nurses to focus fully on delivering quality patient care to the different healthcare settings they are in.” Towne Nursing Staff also emphasized: “We are committed to delivering the Gold Standard to every employee defined by clear guidance and expectations, accessible support structures, enhanced transparency and a modernized framework that reflects and adapts to the ever-changing healthcare landscape.”
Plaintiffs made the following statements about the settlement:
Plaintiffs Cruz, Fober Ced, Javier, Fajardo, Espiritu, and Diamad said: “We are glad we were able to reach an amicable resolution with Towne. If you are a member of the Settlement Class, you will be receiving a notice about the settlement in the coming months if it is preliminarily approved by the Court. That notice will accurately describe the claims and legal rights and positions of both us and our attorneys, Towne Pediatric Homecare LLC, and Towne Nursing Staff.”
Hugh Baran of Katz Banks Kumin LLP, counsel for the nurses, said, “This settlement came about after more than a year and a half of negotiations between the nurses and the Towne Companies. We are pleased with the outcome of the settlement negotiations, especially the clarity and benefits for current and future nurses. Because this is a class action settlement, it must be approved by a court before it is effective. We look forward to presenting the settlement to the Court for approval.”
Patricia Kakalec of Kakalec Law PLLC said: “Our clients are to be commended for coming forward with their claims. By pursuing these negotiations they have brought about a meaningful class-wide settlement for themselves and their fellow nurses.”
Christopher Leung of Leung Law PLLC said: “Filipino nurses come to this country to provide critical nursing care in our communities, while also hoping to build a better life for themselves and their families. We believe this settlement helps to further those goals for our clients and all other immigrant nurses following in their footsteps.”
Plaintiffs are represented by Hugh Baran & Rachel Green of Katz Banks Kumin LLP, Christopher K. Leung of Leung Law PLLC, and Patricia Kakalec of Kakalec Law PLLC.
Defendants are represented by Sami Asaad and Benjamin Jacobs of Pierson Ferdinand LLP.
Again, for more information, impacted nurses are encouraged to visit www.TowneNurseSettlement.com, where updates will be posted as the settlement approval process moves forward.