NEW YORK, Sept. 5, 2023 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Medical Properties Trust, Inc. ("MPT" or the "Company") (NYSE: MPW). Such investors are advised to contact Robert S. Willoughby at newaction@pomlaw.com or 888-476-6529, ext. 7980.
The investigation concerns whether MPT and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On May 23, 2023, MPT announced a transaction pursuant to which it would take an equity stake in Prospect Medical's ("Prospect") managed care business in lieu of cash payment by Prospect of hundreds of millions of dollars in outstanding loans, and unpaid rent and interest owed to MPT.
When MPT 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's managed care business in lieu of payment of contractually owed rent and interest.
Then, on August 18, 2023, the Wall Street Journal published an article reporting that the recapitalization transaction with Prospect had been placed on hold as of July 20, 2023, pursuant to an order issued by a California regulatory agency. MPT 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.
On this news, MPT's stock price fell $0.57 per share, or 7.6%, to close at $6.93 per share on August 18, 2023.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
888-476-6529 ext. 7980
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SOURCE Pomerantz LLP
