SAN DIEGO, April 17, 2023 (GLOBE NEWSWIRE) --
The Class: Robbins LLP reminds investors that a shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Medical Properties Trust, Inc. (NYSE: MPW) common stock between March 1, 2022 and February 22, 2023, for violations of the Securities Exchange Act of 1934. Medical Properties (MPT) operates as a real estate investment trust (“REIT”) 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.
What Now: Similarly situated shareholders may be eligible to participate in the class action against MPT. Shareholders who want to act as lead plaintiff for the class must file their papers by June 12, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
What is this Case About: Medical Properties Trust, Inc. (MPW) Misled Investors Regarding the Ability of One of its Largest Tenants to Meet its Rental Obligations
According to the complaint, 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.
On February 23, 2023, MPT announced its fourth quarter and full year 2023 financial results, disclosing an impairment of about $171 million on four properties leased to Prospect as well as a write off of about $112 million in unbilled rent for the same client. On this news, the Company’s stock price fell $0.80, or 8.7%, to close at $11.14 per share on February 23, 2023, thereby injuring investors.
During the class period, 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; and (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.
Contact us to learn more:
Aaron Dumas, Jr.
(800) 350-6003
adumas@robbinsllp.com
Shareholder Information Form
About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. To be notified if a class action against Medical Properties Trust, Inc. settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.
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