NEW YORK, Sept. 1, 2012 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud at Assisted Living Concepts, Inc. ("ALC" or the "Company") (NYSE: ALC).
The investigation focuses on whether the Company and its executives violated federal securities laws by failing to disclose that ALC was failing to comply with its lease obligations for eight assisted living facilities under its management.
In early May 2012, the audit committee of ALC's board of directors launched an investigation after receiving an internal whistleblower complaint concerning "possible irregularities in connection with" the lease, and on June 21, 2012, ALC settled with the landlord, causing ALC to incur a net loss of $19.5 million for the first six months of 2012 – an amount close to ALC's entire net income in 2011. On August 7, 2012, ALC announced that it was the subject of an SEC investigation concerning a number of topics, including "compliance with occupancy covenants" under the lease and the "leasing of units for employee use."Upon this news, ALC shares fell over 26 percent to close at $7.89 per share on August 7, 2012, representing a loss of shareholder value of over $51 million. Request more information now by clicking here: www.faruqilaw.com/ALC. There is no cost or obligation to you. Take ActionIf you purchased ALC securities between March 12, 2011 and August 6, 2012 and would like to discuss your legal rights, visit www.faruqilaw.com/ALC. You can also contact us by calling Richard Gonnello or Francis McConville toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org, email@example.com or firstname.lastname@example.org. Faruqi & Faruqi, LLP also encourages anyone with information regarding ALC's conduct to contact the firm, including whistleblowers, former employees, shareholders and others. Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP ( www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner. FARUQI & FARUQI, LLP369 Lexington Avenue, 10th Floor New York, NY 10017Attn: Richard Gonnello, Esq. email@example.com Francis McConville, Esq. firstname.lastname@example.orgTelephone: (877) 247-4292 or (212) 983-9330 SOURCE Faruqi & Faruqi, LLP