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Case Status:    SETTLED
On or around 03/24/2011 (Date of stipulation and/or agreement of settlement)

Filing Date: January 16, 2007

Plaintiffs filed a Stipulation of Settlement on February 27, 2009, outlining a $13.5 million agreement to release defendants of pending claims. According to the firms annual report for year 2008, the majority of the settlement will be funded by insurance.

The consolidated complaint, which extends the dates of the class period from the original, was filed on June 6, 2008. Defendants moved for dismissal on August 11, 2008.

On February 23, 2007, a consent motion for the extension of time to respond to complaint and a proposed Order were filed and entered. As the case continues, several motions to consolidate cases, for the appointment of lead plaintiffs and lead counsels were filed on March 19, 2007. However, on May 07, 2007, a minute Order granting the motion for extension of time to respond to complaint was entered. In addition, a proposed Order in regards to the appointment of lead plaintiffs, lead counsels and to consolidate cases was entered on June 08, 2007. As a result, on July 31, 2007 the judge entered an order consolidating all related cases and appointing United Food and Commercial Workers Union Local 880 as lead plaintiff. According to another minute Order entered on May 02, 2008, the lead plaintiffs should file a Consolidated Amended Complaint by June 06, 2008.

According to a press release dated January 16, 2007, the complaint charges Sunrise and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Sunrise provides residential and other services to retirees and elderly persons through facilities it develops and constructs and then manages, often through joint ventures.

The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company's business, its stock option plans, its compensation practices and its financial results. As a result of these false statements, Sunrise's common stock traded at artificially inflated prices during the Class Period, reaching a high of $39.68 per share on March 29, 2006. The individual defendants took advantage of Sunrise's falsified financial results, the artificial inflation of Sunrise's stock and the manipulation of its stock option plans by selling shares of their Sunrise stock for illegal insider trading proceeds of over $34 million, while Sunrise's top officers pocketed millions more in unjustified bonus payments enhanced in part by Sunrise's falsified profits. The complaint alleges that defendants had previously manipulated the Company's stock option plans so as to enrich themselves by "backdating" or "spring-loading" the stock options they were granted.

The complaint further alleges that on May 9, 2006, Sunrise disclosed a delay in reporting its first quarter 2006 results to allow a review of its financial statements, and on July 31, 2006, Sunrise revealed it would be forced to restate its financial statements going back several years - at least to 1999 - and that its prior financial statements could no longer be relied upon. Sunrise also admitted it could not file current period financial statements for the first, second and third quarters of 2006 and that when it restated its financial results, at least $100 million of previously reported profits from its joint ventures and real estate sales would be eliminated. As these revelations unfolded, Sunrise's stock fell from $39.62 on May 8, 2006 to as low as $24.40 on July 31, 2006.

COMPANY INFORMATION:

Sector: Healthcare
Industry: Healthcare Facilities
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: SRZ
Company Market: New York SE
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: D. District Columbia
DOCKET #: 07-CV-00102
JUDGE: Hon. Reggie B. Walton
DATE FILED: 01/16/2007
CLASS PERIOD START: 08/04/2005
CLASS PERIOD END: 06/15/2006
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Entwistle & Cappucci LLP
    299 Park Avenue, 14th Floor, Entwistle & Cappucci LLP, NY 10171
    212.894.7200 212.894.7272 · info@entwistle-law.com
  2. Lerach Coughlin Stoia Geller Rudman & Robbins LLP (D.C.)
    1100 Connecticut Avenue, N.W., Suite 730, Lerach Coughlin Stoia Geller Rudman & Robbins LLP (D.C.), DC 20036
    202.822.6762 202.828.8528 · info@lerachlaw.com
  3. Lerach Coughlin Stoia Geller Rudman & Robbins LLP (San Diego)
    655 West Broadway, Suite 1900, Lerach Coughlin Stoia Geller Rudman & Robbins LLP (San Diego), CA 92101
    619.231.1058 619.231.7423 ·
No Document Title Filing Date
COURT: D. District Columbia
DOCKET #: 07-CV-00102
JUDGE: Hon. Reggie B. Walton
DATE FILED: 06/06/2008
CLASS PERIOD START: 02/26/2004
CLASS PERIOD END: 07/28/2006
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Berman DeValerio Pease Tabacco Burt & Pucillo (FL)
    515 North Flagler Drive - Suite 1701, Berman DeValerio Pease Tabacco Burt & Pucillo (FL), FL 33401
    561.835.9400 ·
  2. Bernstein Litowitz Berger & Grossmann LLP (New York, NY)
    1285 Avenue of the Americas, 33rd Floor, Bernstein Litowitz Berger & Grossmann LLP (New York, NY), NY 10019
    212.554.1400 212.554.1444 · blbg@blbglaw.com
No Document Title Filing Date