Lawsuit for Investors in HCP, Inc. (NYSE:HCP) announced by Shareholders Foundation
May 24 2016 - 10:20AM
The Shareholders Foundation, Inc. announces that a lawsuit was
filed in Ohio on behalf of certain purchasers of shares of HCP,
Inc. (NYSE:HCP) against real estate investment trust HCP, Inc., HCR
ManorCare, Inc. ("ManorCare"), and certain of their senior
executives over alleged Securities Laws violations. The lawsuit
seeks to recover damages for certain NYSE:HCP investors.
Investors who purchased shares of HCP, Inc. (NYSE:HCP) have
certain options and for certain investors there are short and
strict deadlines running. Deadline: July 11, 2016. NYSE:HCP
investors should contact the Shareholders Foundation at
mail@shareholdersfoundation.com or call +1(858) 779 - 1554.
The plaintiff alleges the defendants violated Federal Securities
Laws by issuing allegedly false and misleading press releases,
financial statements, filings with the SEC, and statements during
investor conference calls. The plaintiff says that HCP, Inc.
(“HCP”) was highly dependent upon the operations of ManorCare, a
nursing home operator, which served as HCP's most significant
client, that prior to March 2015 HCP, Inc. invested directly in
ManorCare, purchasing substantially all of ManorCare's real estate
facilities (which were then leased back to ManorCare) and taking a
10% equity stake in ManorCare, and that as a result of that
transaction, ManorCare had a significant impact on several aspects
of HCP's operations and was highly important to HCP investors.
The plaintiff claims that between March 30, 2015 and February 8,
2016, the defendants misrepresented ManorCare's financial
performance, the value of HCP 's ManorCare assets, and that HCP's
revenue stream from ManorCare leases was secure. Moreover, HCP and
ManorCare represented that ManorCare had "a long history of
compliance with regulations," and that ManorCare's billing
practices had been "audited" in the past and were "to the standard
one would want,” and that as result of these misrepresentations,
HCP common stock traded at allegedly artificially inflated prices
between March 30, 2015 and February 8, 2016.
The plaintiff alleges that the defendants knew or recklessly
disregarded that ManorCare was engaged in rampant billing fraud,
which allegedly generated false claims for "reimbursement"
submitted to government programs. ManorCare's billing fraud was the
subject of multiple whistleblower lawsuits, and an investigation by
the DOJ.
On April 21, 2015, HCP disclosed that the DOJ had intervened in
the whistleblower lawsuits and filed a consolidated complaint.
On May 5, 2015, HCP announced its first quarter 2015 financial
results. HCP, Inc. disclosed that it had recorded a non-cash
impairment charge of $478 million related to certain of its
lease arrangements with ManorCare.
On February 9, 2016, HCP announced its results for the fourth
quarter and year ended December 31, 2015. HCP also disclosed that
its equity stake in ManorCare had been written down to zero, and
that it had taken an $836 million non-cash impairment on
its ManorCare lease assets and placed all of its ManorCare real
estate assets on a "Watch List."
Those who purchased HCP, Inc. (NYSE:HCP) shares should contact
the Shareholders Foundation, Inc. by e-mail at
mail@shareholdersfoundation.com or call +1 (858) 779-1554.
The Shareholders Foundation, Inc. is a professional portfolio
legal monitoring and a settlement claim filing service, which does
research related to shareholder issues and informs investors of
securities class actions, settlements, judgments, and other legal
related news to the stock/financial market. The Shareholders
Foundation, Inc. is not a law firm. The information is provided as
a public service. It is not intended as legal advice and should not
be relied upon.
CONTACT:
Shareholders Foundation, Inc.
Michael Daniels
+1 (858) 779-1554
mail@shareholdersfoundation.com
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
HCP (NYSE:HCP)
Historical Stock Chart
From Mar 2024 to Apr 2024
HCP (NYSE:HCP)
Historical Stock Chart
From Apr 2023 to Apr 2024