Lawsuit for Investors in HCP, Inc. (NYSE:HCP) announced by Shareholders Foundation


SAN DIEGO, May 24, 2016 (GLOBE NEWSWIRE) -- 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.


            

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