UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549



FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


Date of Report (Date of earliest event reported):         September 2, 2010


SUN HEALTHCARE GROUP, INC.
(Exact name of registrant as specified in its charter)


Delaware
1-12040
85-0410612
(State of Incorporation)
(Commission File Number)
(I.R.S. Employer
Identification No.)


18831 Von Karman, Suite 400
Irvine, CA
 
92612
(Address of principal executive offices)
(Zip Code)

Registrant’s telephone number including area code: (949) 255-7100

Not Applicable
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))



 
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Item 8.01                      Other Events.


On September 2, 2010, a lawsuit was filed in California Superior Court by a former employee of a subsidiary of our medical staffing company, alleging violation of various wage and hour provisions of the California Labor Code.   The lawsuit has been filed as a purported class action on behalf of the former employee and all those similarly situated. The complaint alleges that the aggregate claim is less than $5 million.  We are in the process of investigating the allegations set forth in the complaint.  We intend to vigorously defend the lawsuit.




 
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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


SUN HEALTHCARE GROUP, INC.
 
 
 
 /s/ Mike Berg                                     
Name:  Mike Berg
Title:  Secretary


Dated:  September 8, 2010

 
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