Two residents of nursing homes run by a financially troubled welfare business group are preparing to file a lawsuit against the group and the Health and Welfare Ministry, seeking compensation for inadequate services, it was learned Tuesday.

A man who lives in a nursing facility in Ito, Shizuoka Prefecture, and another who is in one in Kobe's Kita Ward argue that the Tokyo-based operator of the two homes -- Japan Senior Citizens Welfare Organization -- failed to provide adequate medical and nursing care because of a decline in staff, their lawyers said.

They are also holding the ministry responsible because of its position as supervisor of welfare-related businesses. The lawyers said their clients, whose names were not provided, will bring the case before the Tokyo District Court by month's end.