According to the Complaint, Medical Properties Trust, Inc. operates as a real estate investment trust that leases its facilities under long-term leases to providers of healthcare services, such as operators of general acute care hospitals, behavioral health facilities, inpatient physical rehabilitation facilities, long-term acute care hospitals, and freestanding ER/urgent care facilities.

Prospect Medical Holdings, Inc. (“Prospect”) leases and operates 13 of MPT’s facilities. As of December 31, 2021, Prospect was MPT’s third largest tenant, representing 7.3% of its total assets. As a tenant, Prospect is required to pay all ongoing operating expenses of the facility and for any desired expenditures.

The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, the Complaint alleges Defendants failed to disclose to investors: (1) that Prospect was facing significant pressures affecting the profitability of its Pennsylvania properties; (2) that, as a result, there was a significant risk that Prospect would be unable to meet its rental obligations owed to MPT; (3) that, “given the elongated timing of the Pennsylvania recovery,” the Company was reasonably likely to record an impairment charge to the real estate value of the Pennsylvania properties; (4) and that as a result of the foregoing, Defendant’s positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

This case was voluntarily dismissed by the Plaintiff on May 9, 2023. A related case continues under Docket 23-CV-00486 in the Northern District of Alabama.

On July 26, 2023, the Court issued an Order appointing Lead Plaintiff and Counsel. Lead Plaintiff filed an amended Complaint on September 22. Defendants filed a Motion to Dismiss the amended Complaint on October 13.

The Court issued an Order consolidating cases on February 1, 2024. All future docketing was ordered to be done in the lead case 23-CV-00486.

On September 26, 2024, the Court issued an Order granting Defendants' Motion to Dismiss, dismissing the case with prejudice and directing the Clerk of Court to close the case.