MONSEY, N.Y., Aug. 21, 2023 (GLOBE NEWSWIRE) -- The law firm of Wohl & Fruchter LLP is investigating whether Medical Properties Trust, Inc. (NYSE: MPW) (“MPW”) has violated federal securities laws based on MPW’s failure to previously disclose a July 20, 2023 order issued by California regulators placing a hold on a recapitalization transaction between MPW and one of its largest tenants, Prospect Medical. Please see further details concerning the investigation below.
If you purchased MPW shares between May 23, 2023, and August 18, 2023, and suffered losses as a result of the 7.60% drop in MPW’s stock price on August 18, 2023, and have questions about your legal rights, please contact us at the following link to discuss your options at no charge:
https://wohlfruchter.com/cases/medical-properties-trust-inc/
Alternatively, you may contact us by phone at 866-833-6245, or via email at alerts@wohlfruchter.com.
Why is there an investigation?
On May 23, 2023, MPW announced a transaction pursuant to which it would be taking an equity stake in Prospect Medical’s managed care business in lieu of cash payment by Prospect Medical of hundreds of millions of dollars in outstanding loans, and unpaid rent and interest owed to MPW.
When MPW reported its second quarter results on August 8, 2023, it stated that the proposed transaction with Prospect had reduced losses by $68 million based on the receipt of an equity stake in Prospect Medical’s managed care business in lieu of payment of contractually owed rent and interest.
On August 18, 2023, the Wall Street Journal published an article disclosing that the recapitalization transaction with Prospect Medical had been placed on hold as of July 20, 2023, pursuant to an order issued by a California regulatory agency.
MPW did not disclose the regulator’s order when it reported second quarter results on August 8, 2023, or in its quarterly report filed on August 9, 2023, with the Securities and Exchange Commission.
Please visit our website to download the July 20, 2023 order and accompanying letter concerning the deal with Prospect Medical issued by the Department of Managed Care of the Health and Human Services Agency of the State of California (link in the right sidebar):
https://wohlfruchter.com/cases/medical-properties-trust-inc/
After publication of the Wall Street Journal article, MPW’s stock price dropped 7.6% on August 18, 2023, to a close of $6.93 per share.
About Wohl & Fruchter
Wohl & Fruchter LLP, with offices in New York City and Monsey, has for over a decade been representing investors in litigation arising from fraud and other corporate misconduct, and recovered hundreds of millions of dollars in damages for investors. Please visit our website, www.wohlfruchter.com, to learn more about our Firm, or contact one of our partners.
Contact:
Wohl & Fruchter LLP
Joshua E. Fruchter
Toll Free 866.833.6245
alerts@wohlfruchter.com
www.wohlfruchter.com
