SAN FRANCISCO--(a class action lawsuit has been brought on behalf of all persons who purchased the Class A common stock of Assisted Living Concepts, Inc. (“ALC” or the “Company”) (NYSE: ALC) between March 12, 2011 and August 6, 2012, inclusive (the “Class Period”).)--The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces that
If you purchased ALC Class A common stock during the Class Period, you may move the Court for appointment as lead plaintiff by no later than October 29, 2012. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the action will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.
ALC shareholders who wish to learn more about the action and how to seek appointment as lead plaintiff should click here or contact Sharon Lee of Lieff Cabraser toll-free at 1 (800) 541-7358.
Background on the ALC Class Litigation
The action is brought against ALC and its former Chief Executive Officer for violations of the Securities Exchange Act of 1934. ALC, together with its subsidiaries, operates senior living facilities in the United States.
The complaint alleges that during the Class Period, defendants misrepresented and/or failed to disclose that ALC was not in compliance with its obligations under a lease agreement with Ventas Realty, Limited Partnership (“Ventas”) covering eight assisted living facilities operated by the Company. ALC allegedly failed to maintain minimum occupancy rates and concealed this fact by counting units leased to employees as rentals by third parties.
In May 2012, ALC disclosed for the first time that Ventas brought an action against ALC in April 2012 alleging breaches of their lease agreement. ALC also disclosed that the audit committee of its board of directors launched an investigation after receiving an internal whistleblower complaint concerning “possible irregularities in connection with” the lease with Ventas.
On June 21, 2012, ALC settled with Ventas, causing ALC to incur a net loss of $19.5 million for the first two quarters of 2012 – an amount almost equal to ALC’s entire net income in 2011.
On August 7, 2012, ALC announced that it was the subject of an SEC investigation concerning “compliance with occupancy covenants” under the lease and the “leasing of units for employee use,” among other matters. Upon this news, ALC shares fell $2.88 per share, or over 26 percent, to close at $7.89 on August 7, 2012.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.
Since 2003, the National Law Journal has selected Lieff Cabraser as one of the top plaintiffs’ law firms in the nation. In compiling the list, the National Law Journal examined recent verdicts and settlements in addition to overall track records. Lieff Cabraser is one of only two plaintiffs’ law firms in the United States to receive this honor for the last nine consecutive years.
For more information about Lieff Cabraser and the firm’s representation of investors, please visit http://www.lieffcabraser.com.
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