A Deadline is coming up on July 11, 2016 in the lawsuit for investors in HCP, Inc. (NYSE:HCP) and NYSE:HCP stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 06/15/2016 -- A deadline is coming up on July 11, 2016 in the lawsuit filed for investors of HCP, Inc. (NYSE:HCP over alleged securities laws violations by HCP, Inc.
Investors who purchased shares of HCP, Inc. (NYSE:HCP) have certain options and there are strict and short deadlines running. Deadline: July 11, 2016. NYSE:HCP stockholders should contact the Shareholders Foundation at firstname.lastname@example.org or call 858-779-1554.
According to the complaint filed in the U.S. District Court for the Northern District of Ohio the plaintiff alleges that the defendants violated Federal Securities Laws by issuing allegedly false and misleading press releases, financial statements, filings with the U.S. Securities and Exchange Commission ("SEC"), and statements during investor conference calls. The plaintiff says that HCP, Inc was highly dependent upon the operations of ManorCare, a nursing home operator, which served as HCP, Inc'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, Inc's operations and was highly important to HCP, Inc. investors.
The plaintiff claims that between March 30, 2015 and February 8, 2016, the defendants misrepresented ManorCare's financial performance, the value of HCP, Inc '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, Inc 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 United States Department of Justice ("DOJ").
On April 21, 2015, HCP, Inc. disclosed that the DOJ had intervened in the whistleblower lawsuits and filed a consolidated complaint.
On May 5, 2015, HCP, Inc. 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, Inc. announced its results for the fourth quarter and year ended December 31, 2015, and issued its 2016 outlook. HCP, Inc. reported that its annual Total Revenue rse from over $2.26 billion in 2014 to over $2.54 billion in 2015 while its Net Income of $922.23 million in 2014 declined to a Net Loss of $559.24 million in 2015. HCP, Inc. 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."
Shares of HCP, Inc. (NYSE:HCP) declined on February 11, 2016 to as low as $25.11 per share.
Those who purchased shares of HCP, Inc. have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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