SAN FRANCISCO, May 12, 2016 (GLOBE NEWSWIRE) -- Hagens Berman Sobol Shapiro LLP, a national investor-rights law firm, alerts HCP, Inc. (NYSE:HCP) investors to the newly filed class action lawsuit and the July 11, 2016 lead plaintiff deadline.
If you suffered significant losses because of your purchases of HCP between March 30, 2015 and February 8, 2016 or have information that will help our investigation contact Hagens Berman Partner Reed Kathrein, who is leading the firm’s investigation by calling 510-725-3000, emailing HCP@hbsslaw.com or visiting https://www.hbsslaw.com/cases/HCP . The lawsuit was filed in the U.S. District Court for the Northern District of Ohio and investors have until July 11, 2016 to move the court to participate as a lead plaintiff.
The litigation asserts that Defendants knowingly misled investors, in part, about the financial condition of the Company’s largest tenant, ManorCare, and falsely assured investors that assets HCP acquired from ManorCare and revenue stream from its leases with ManorCare were secure and unimpaired.
In addition, it asserts that Defendants knowingly misrepresented that ManorCare had “a long history of compliance with regulations” in contrast with the fact that the Department of Justice’s lawsuit against ManorCare claiming it submitted over $6 billion dollars in false claims for government reimbursements.
When HCP first disclosed, on May 5, 2015, that its ManorCare assets were impaired by $478 million, HCP’s stock declined by 2.9%.
Then, when HCP disclosed on November 3, 2015 that its equity interest in ManorCare was impaired by $27 million HCP’s stock declined by 2.6%.
Finally, when HCP disclosed on February 9, 2016 that its ManorCare equity interest was worth nothing and its ManorCare assets were impaired by an additional $836 million, HCP’s stock price declined 17%.
“HCP’s ManorCare-related problems were clearly material to HCP investors, who should have been – but were not – fully informed of them,” said Hagens Berman partner Reed Kathrein.
Whistleblowers: Persons with non-public information regarding HCP should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new SEC whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 510-725-3000 or email HCP@hbsslaw.com.
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