Law offices of todd m. garber announces investigation of assisted
living concepts, inc.
Los angeles--(business wire)--the law offices of todd m. garber announces that it is investigating potential claims against assisted living concepts, inc. (“alc” or the “company”) (nyse:alc) concerning possible violations of federal securities laws. the investigation is related to certain statements issued by the company between march 12, 2011 and august 6, 2012 concerning the company’s operations and business. alc, together with its subsidiaries, operates senior living residences in the united states. in january 2008, alc acquired eight facilities that it leased from ventas realty limited partnership. under the terms of its lease with ventas (the “ventas lease”), alc was obligated to maintain overall occupancy of at least 82% and all regulatory licenses required to operate the leased facilities for their intended use. in its quarterly and annual sec filings, alc affirmatively stated that it was in compliance with all occupancy and operating covenants under the ventas lease. the investigation is related to allegations that unbeknownst to investors: (1) there is substantial evidence that alc was in breach of the ventas lease’s minimum occupancy covenants, which alc concealed by treating units leased to employees as bona fide rentals by third parties; and (2) also undisclosed, until it was revealed in a lawsuit filed by ventas in late april 2012 (the “ventas litigation”), georgia and alabama state regulators served notices in february and march 2012 of their intent to revoke licenses for three of the facilities leased from ventas. in early may 2012, the audit committee of alc’s board of directors launched an investigation after receiving an internal whistleblower complaint concerning “possible irregularities” in connection with the ventas lease. on june 21, 2012, alc announced a settlement of the ventas litigation. as a result of the settlement, for the first six months of 2012 alc reported a net loss of $19.5 million – nearly equal to alc’s entire net income for 2011. then, on august 7, 2012 the company announced that it was the subject of an investigation by the securities and exchange commission concerning, among other things, “compliance with occupancy covenants” under the ventas lease and the “leasing of units for employee use.” if you purchased alc stock between march 12, 2011 and august 6, 2012, if you have information or would like to learn more about these claims, or if you wish to discuss these matters or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact todd m. garber, esquire, of the law offices of todd m. garber, by telephone at 213-700-7262 or by email to info@toddgarberlaw.com. this press release may be considered attorney advertising in some jurisdictions under the applicable law and ethical rules.
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