SHAREHOLDER ALERT: Rigrodsky & Long, P.A. Announces A Securities Fraud Class Action Lawsuit Has Been Filed Against HCP, Inc. ...
May 17 2016 - 11:47AM
Rigrodsky & Long, P.A.:
- Do you, or did you, own shares of HCP, Inc.
(NYSE:HCP)?
- Did you purchase your shares between March 30, 2015 and
February 8, 2016, inclusive?
- Did you lose money in your investment?
Rigrodsky & Long, P.A. announces that a
complaint has been filed in the United States District Court for
the Northern District of Ohio on behalf of all persons or entities
that purchased the common stock of HCP, Inc. (“HCP” or the
“Company”) (NYSE:HCP) between March 30, 2015 and February 8, 2016,
inclusive (the “Class Period”), alleging violations of the
Securities Exchange Act of 1934 against the Company and certain of
its officers (the “Complaint”).
If you purchased shares of HCP during the Class
Period, or purchased shares prior to the Class Period and still
hold HCP, and wish to discuss this action or have any questions
concerning this notice or your rights or interests, please contact
Timothy J. MacFall, Esquire or Peter Allocco of Rigrodsky &
Long, P.A., 2 Righter Parkway, Suite 120, Wilmington, DE 19803 at
(888) 969-4242; by e-mail to info@rl-legal.com; or at:
http://rigrodskylong.com/investigations/hcp-inc-hcp.
The Complaint alleges that throughout the Class Period, defendants
made materially false and misleading statements, and omitted
materially adverse facts, about the Company’s business, operations
and prospects. Specifically, the Complaint alleges that the
defendants concealed from the investing public that: (1) ManorCare
was actively engaged in reimbursement billing fraud, in violation
of federal and state laws; (2) as a result of ManorCare’s billing
fraud, ManorCare’s reported revenue and earnings were false and
ManorCare’s consolidated financial statements did not comply with
GAAP; and (3) ManorCare’s billing fraud and the DOJ’s action
against ManorCare put HCP’s lease revenue stream from ManorCare in
jeopardy, and called into question the value of HCP’s ManorCare
real estate assets and HCP’s equity stake in ManorCare. As a
result of defendants’ alleged false and misleading statements, the
Company’s stock traded at artificially inflated prices during the
Class Period.
According to the Complaint, the truth was
revealed through a series of corrective disclosures, beginning on
April 21, 2015, when HCP disclosed that the DOJ had intervened in
the whistleblower lawsuits and filed a consolidated
complaint.
Then, on February 9, 2016, HCP 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.” HCP further revealed that HCP could
no longer rely on ManorCare to pay its rent, and, as a result, had
changed the way it accounted for lease revenue from ManorCare to a
“cash only” basis. HCP also disclosed skyrocketing legal
costs incurred by ManorCare in defending against the whistleblower
and DOJ lawsuits.
On this news, shares of HCP dropped over 16%,
closing at $28.33 per share on February 9, 2016, on heavy trading
volume.
If you wish to serve as lead plaintiff, you
must move the Court no later than July 11,
2016. A lead plaintiff is a representative party
acting on behalf of other class members in directing the
litigation. Any member of the proposed class may move the
court to serve as lead plaintiff through counsel of their choice,
or may choose to do nothing and remain an absent class member.
Attorney advertising. Prior results do not guarantee a
similar outcome.
CONTACT:
Rigrodsky & Long, P.A.
Timothy J. MacFall, Esquire
Peter Allocco
(888) 969-4242
(516) 683-3516
Fax: (302) 654-7530
info@rl-legal.com
http://www.rigrodskylong.com
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