Philadelphia, Pennsylvania--(Newsfile Corp. - November 27, 2023) - A recently filed securities fraud class action complaint alleges that Medical Properties Trust, Inc. (NYSE: MPW), via certain of its officers and directors, engaged in a widespread scheme to hide from investors that, contrary to the Company's public representations, its portfolio of assets were severely distressed and non-performing such that they could not make their rent payments. It is alleged that Defendants employed a number of "uncommercial transactions" to prop up MPW's non-performing assets in the short term to avoid recording impairment charges.
Specifically, it is alleged that Defendants made materially false or misleading statements and/or failed to disclose that: (i) the Company masked the distressed state of its tenants through sale-leaseback arrangements which were essentially round-robin transactions in that they allowed debt-saddled tenants to meet their obligations in the short-term; (ii) the Company fraudulently transferred hundreds of millions of dollars in what amounted to a bailout of financially distressed tenants; (iii) the Company concealed its fraudulent transfers with fake construction projects with purportedly high capital expenses, despite the fact that the Company entered into "triple-net leases," which meant that its tenants were obligated to pay a significant portion of expenses, such as real estate taxes, insurance, and maintenance; and (iv) as a result, the Company's public statements, including those with respect to acute care facilities in Pennsylvania, were materially false and misleading at the time they were made.
Current Medical Properties shareholders who have held Medical Properties stock since on or before July 25, 2019, can seek corporate reforms, the return of funds spent defending litigation back to the company, and a court approved incentive award, at no cost to them.
If you would like to learn more about this matter, you are encouraged visit https://grabarlaw.com/the-latest/mpw-shareholder-investigation/, contact Joshua H. Grabar at jgrabar@grabarlaw.com or Mia R. Heller at mheller@grabarlaw.com, or call 267-507-6085.
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Contact:
Joshua H. Grabar, Esq.
Grabar Law Office
One Liberty Place
1650 Market Street, Suite 3600
Philadelphia, PA 19103
Tel: 267-507-6085
Email: jgrabar@grabarlaw.com
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