Oct. 13, 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: (1) ALC was in breach of the Ventas Lease's minimum occupancy covenants, which were hidden by treating units leased to employees as third party rentals; and (2)
state regulators had served notices in February and
of their intent to revoke licenses for three of the ALC facilities leased from Ventas.
, 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
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
per share on
August 7, 2012
, representing a loss of shareholder value of over
Request more information now by clicking here: www.faruqilaw.com/ALC. There is no cost or obligation to you.
If you purchased ALC stock or options between
March 12, 2011
August 6, 2012
and would like to discuss your legal rights, visit
. You can also contact us by calling
toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to
. Faruqi & Faruqi, LLP also encourages anyone with information regarding ALC's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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). 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.
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