Medical Properties Trust
- Armstrong v. Medical Properties Trust, Inc., et al.
- Class Period:May 23, 2023 - August 17, 2023
- Date Filed:September 29, 2023
- Jurisdiction:U.S. District Court, Southern District of New York
- Docket Number: 1:23-cv-08597
- Lead Plaintiff Deadline: November 28, 2023
Seek Plaintiff 0
A class action lawsuit, captioned Armstrong v. Medical Properties Trust, Inc., et al., has been filed against Medical Properties Trust, Inc (“Medical Properties Trust”, “MPW” or the “Company”) (NYSE: MPW) and certain of its top current and/or former executive officers alleging violations of federal securities laws. The lawsuit seeks to represent purchasers or acquirers other than Defendants that purchased or acquired MPW securities between May 23, 2023, and August 17, 2023, both dates inclusive (the “Class Period”).
Medical Properties Trust is a self-advised real estate investment trust (“REIT”) that was formed to acquire and develop net-leased healthcare facilities. MPW’s financing model purportedly facilitates acquisitions and recapitalizations and allows operators of hospitals to unlock the value of their real estate assets to fund facility improvements, technology upgrades, and other investments in operations.
The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Recap Transaction was subject to regulatory approval and had in fact been placed on hold by the Department of Managed Health Care (“DMHC”); (ii) accordingly, MPW had misrepresented the regulatory process for the Recap Transaction’s approval; (iii) as a result of the foregoing, MPW overstated the approval prospects and benefits of the Recap Transaction; and (iv) as a result, the Company’s public statements regarding the Recap Transaction were materially false and misleading at all relevant times.
On August 18, 2023, the Wall Street Journal published an article entitled “Cracks Deepen for America’s Biggest Hospital Landlord: Struggling Tenants, a Bailout on Hold” (the “WSJ Article”). That same day, MPW issued a press release responding to the WSJ Article, in which the Company downplayed the DMHC Order as a “standard, expected, and non-controversial part of the approval process for [the Recap Transaction]” and attempted to excuse the Company’s non-disclosure of the DMHC Order to shareholders by stating that the “DMHC’s request was deemed immaterial to [MPW’s] financials and thus did not require disclosure.”
Despite MPW’s attempts to reassure investors, following publication of the WSJ Article, MPW’s stock price fell $0.57 per share, or 7.6%, to close at $6.93 per share on August 18, 2023.
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If you purchased or otherwise acquired MPW securities between May 23, 2023, and August 17, 2023, both dates inclusive, and suffered substantial losses, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at email@example.com.
The deadline to submit an application with the Court to serve as a lead plaintiff in the Medical Properties Trust lawsuit is November 28, 2023.