Hagens Berman, a nationwide investor-rights law firm, today notified investors that less than three weeks remain before the Oct. 29, 2012, lead plaintiff deadline in a securities class-action lawsuit filed against Assisted Living Concepts (NYSE:ALC) (“ALC”).
Investors who purchased shares of ALC between March 12, 2011, and Aug. 6, 2012 (the “class period”), and who have losses exceeding $300,000, may contact Hagens Berman partner Reed R. Kathrein, who is leading Hagens Berman’s investigation, to discuss moving for lead plaintiff in the case. Investors can contact Mr. Kathrein by calling (510) 725-3000 or by emailing ALC@hbsslaw.com.
Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The lawsuit alleges that the company misled shareholders by failing to disclose that ALC did not maintain minimum occupancy rates at several facilities in violation of its lease agreements. The lawsuit also claims that ALC hid its failure to maintain minimum occupancy rates by including units leased to its own employees in its totals.The Securities and Exchange Commission (SEC) has announced it is investigating ALC for potential violations of the securities laws and has issued a subpoena requesting documents related to occupancy covenants at various ALC facilities and the leasing of units for employee use. Following ALC’s disclosure of the SEC probe on Aug. 7, 2012, the company’s stock lost more than 25 percent of its value. Whistleblowers Persons with knowledge that may help the investigation are encouraged to contact the firm. The SEC recently finalized new rules as part of its implementation of the whistleblower provisions in the Dodd-Frank Wall Street Reform Bill. The new rules protect whistleblowers from employer retaliation and allow the SEC to reward those who provide information leading to a successful enforcement with up to 30 percent of the recovery.