NEW YORK, May 11, 2016 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of HCP, Inc. ("HCP" or the "Company") (NYSE: HCP). Such investors are advised to contact Robert S. Willoughby at email@example.com or 888-476-6529, ext. 237.
The investigation concerns whether HCP and certain of its officers and/or directors have violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
In 2010, HCP purchased the real estate assets of the nursing home provider HCR ManorCare, Inc. ("ManorCare"), HCP's most significant client, and subsequently took a 10% stake in ManorCare.
On April 21, 2015, HCP disclosed that the U.S. Department of Justice had intervened in whistleblower lawsuits against ManorCare concerning billing fraud and filed a consolidated complaint.
On this news, HCP stock fell $0.48, or 1.11%, to close at $42.85 on April 21, 2015.
Then, on May 5, 2015, HCP disclosed that it had recorded a non-cash impairment charge of $478 million related to certain of its lease arrangements with ManorCare.
On this news, HCP stock fell $1.20, or 2.94%, to close at $39.55 on May 5, 2015.
Finally, 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."
On this news, HCP stock fell $5.66, or 16.65%, to close at $28.33 on February 9, 2016.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
Robert S. Willoughby
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SOURCE Pomerantz LLP