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Case Status:    DISMISSED    
On or around 11/22/2019 (Court's order of dismissal)

Filing Date: May 09, 2016

According to the law firm press release, 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, a nursing home operator, which served as HCP's most significant client.

Prior to the start of the Class Period, HCP invested directly in ManorCare, purchasing substantially all of ManorCare's real estate facilities (which were then leased back to ManorCare) and taking 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 was highly important to HCP investors.

The Complaint alleges throughout the Class Period, Defendants misrepresented ManorCare's financial performance, the value of HCP's ManorCare assets, and that HCP's revenue stream from ManorCare leases was secure. Moreover, HCP and ManorCare represented that ManorCare had "a long history of compliance with regulations," and that ManorCare's billing practices had been "audited" in the past and were "to the standard one would want." As a result of these misrepresentations, HCP common stock traded at artificially inflated prices during the Class Period.

In truth, Defendants knew or recklessly disregarded that ManorCare was engaged in rampant billing fraud, which allegedly generated 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").

On April 21, 2015, HCP disclosed that the DOJ had intervened in the whistleblower lawsuits and filed a consolidated complaint. Then, 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. Finally, 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."

On November 28, 2017, the Court issued an Order appointing Lead Plaintiffs and Counsel. Lead Plaintiffs filed a consolidated Complaint on February 28, 2018. On March 30, Defendants filed Motions to Dismiss the consolidated Complaint. On December 3, Lead Plaintiffs voluntarily dismissed three of the Defendants. On November 22, 2019, the Court issued an Order granting Defendants' Motion to Dismiss the consolidated Complaint for failure to state a claim.


Sector: Services
Industry: Real Estate Operations
Headquarters: United States


Ticker Symbol: HCP
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: N.D. Ohio
DOCKET #: 16-CV-01106
JUDGE: Hon. Jeffrey J. Helmick
DATE FILED: 05/09/2016
CLASS PERIOD END: 02/08/2016
  1. Bernstein Litowitz Berger & Grossmann LLP (Former New York)
  2. Climaco, Wilcox, Peca, Tarantino & Garofoli Co. LPA
No Document Title Filing Date
COURT: N.D. Ohio
DOCKET #: 16-CV-01106
JUDGE: Hon. Jeffrey J. Helmick
DATE FILED: 02/28/2018
CLASS PERIOD END: 02/08/2016
  1. Landskroner Grieco Merriman, LLC
    1360 West 9th Street, Suite 200, Landskroner Grieco Merriman, LLC, OH 44113
    216.522.9000 216.522.9007 ·
  2. Motley Rice LLC
    600 Third Avenue, Suite 2101, Motley Rice LLC, NY 10016
    (212) 577-0040 (212) 577-0054 ·
  3. Robbins Geller Rudman & Dowd LLP (Boca Raton)
    120 East Palmetto Park Road, Suite 500, Robbins Geller Rudman & Dowd LLP (Boca Raton), FL 33432
    561.750.3000 561.750.3364 ·
  4. The Kerger Law Firm, LLC
    33 S. Michigan Street, Suite 100 , The Kerger Law Firm, LLC, OH 43604
    419.255.5990 419.255.5997 ·
No Document Title Filing Date
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