On April 21, 2015, HCP disclosed that the DOJ had intervened in three sealed whistleblower lawsuits which had been filed against ManorCare in 2009 and 2011, and that the DOJ had filed a consolidated complaint. In connection with the DOJ's intervention, the DOJ and whistleblower complaints were unsealed, and those allegations were made public for the first time. HCP's stock declined by 1.1% following those disclosures.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, and stated that this impairment reduced the carrying value of HCP's ManorCare assets from $6.6 billion to $6.1 billion. HCP's stock declined by 2.9% following this news. On November 3, 2015, HCP disclosed an impairment charge of $27 million related to its equity interest in ManorCare. HCP's stock declined another 2.6% following this news. 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." HCP further revealed that HCP could no longer rely on ManorCare to pay its rent. Following this news, HCP's stock price fell 17%, from a close of $33.99 per share on February 8, 2016 to a close of $28.33 per share on February 9, 2016. About Lieff Cabraser Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, Nashville, and Seattle, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility. The National Law Journal has recognized Lieff Cabraser as one of the nation's top plaintiffs' law firms for thirteen years. In compiling the list, the National Law Journal examines recent verdicts and settlements and looked for firms "representing the best qualities of the plaintiffs' bar and that demonstrated unusual dedication and creativity." Best Lawyers and U.S. News have named Lieff Cabraser as a "Law Firm of the Year" for each year the publications have given this award to law firms. For more information about Lieff Cabraser and the firm's representation of investors, please visit http://www.lieffcabraser.com. This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces that class action litigation has been filed on behalf of investors who purchased or otherwise acquired the common stock of HCP, Inc. ("HCP" or the "Company") (NYSE: HCP) between March 30, 2015 and February 8, 2016, inclusive (the "Class Period"). If you purchased the common stock of HCP during the Class Period, you may move the Court for appointment as lead plaintiff by no later than July 11, 2016. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the action will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action. HCP investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff should click here or contact Sharon M. Lee of Lieff Cabraser toll-free at 1-800-541-7358. Background on the HCP Securities Class Litigation HCP is a real estate investment trust ("REIT") focused on the healthcare industry. Throughout the Class Period, HCP was highly dependent upon the operations of ManorCare, Inc. ("ManorCare"), a nursing home operator which was HCP's largest tenant. Prior to the start of the Class Period, HCP purchased substantially all of ManorCare's real estate facilities (which were then leased back to ManorCare) and took a 10% equity stake in ManorCare. As a result of that transaction, ManorCare had a significant impact on several aspects of HCP's operations and HCP routinely referred to ManorCare as its "partner" in its communications to investors. Throughout the Class Period, defendants allegedly misrepresented ManorCare's financial performance, the value of HCP's ManorCare assets, that HCP's revenue stream from ManorCare leases was secure, that ManorCare had "a long history of compliance with regulations," and that ManorCare's billing practices had been "audited" and were "to the standard one would want." Defendants were aware or recklessly ignored, however, that ManorCare was engaged in rampant billing fraud, which allegedly generated over $6 billion in 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").