Ryan & maniskas, llp announces class action lawsuit against assisted
living concepts, inc.
Wayne, pa.--(business wire)--ryan & maniskas, llp (www.rmclasslaw.com/cases/alc) announces that a class action lawsuit has been filed in united states district court for the eastern district of wisconsin on behalf of all persons or entities that purchased the securities of assisted living concepts, inc. (“alc” or the “company”) (nyse: alc) between march 12, 2011 and august 6, 2012, inclusive (the “class period”). for more information regarding this class action suit, please contact ryan & maniskas, llp (richard a. maniskas, esquire) toll-free at (877) 316-3218 or by email at rmaniskas@rmclasslaw.com or visit: www.rmclasslaw.com/cases/alc the complaint charges alc and its former chief executive officer with violations of the securities exchange act of 1934. the complaint alleges that during the class period, defendants issued materially false and misleading statements, and omitted material information concerning alc’s compliance with its obligations under a lease covering eight assisted living facilities operated by alc. under the terms of the lease, alc was obligated to maintain specified occupancy rates and insure all regulatory licenses remained in good standing. in its quarterly and annual sec filings, alc confirmed its compliance with these obligations. additionally, alc failed to maintain the specified occupancy rates and concealed this fact by treating units leased to employees as bona fide rentals. also undisclosed to investors until revealed in a lawsuit filed by the landlord, state regulators in georgia and alabama served notices in february and march 2012 of their intent to revoke licenses for three of the facilities, further violating the lease. 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 lease, and on june 21, 2012, alc settled with the landlord, causing alc to incur a net loss of $19.5 million for the first six months of 2012 – an amount close to alc’s entire net income in 2011. on august 7, 2012, alc announced that it was the subject of an sec investigation concerning a number of topics, including “compliance with occupancy covenants” under the lease and the “leasing of units for employee use.” upon this news, alc shares fell over 26 percent to close at $7.89 per share on august 7, 2012, representing a loss of shareholder value of over $51 million. if you are a member of the class, you may, no later than october 29, 2012, request that the court appoint you as lead plaintiff of the class. a lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. in order to be appointed lead plaintiff, the court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. under certain circumstances, one or more class members may together serve as "lead plaintiff." your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. you may retain ryan & maniskas, llp or other counsel of your choice, to serve as your counsel in this action. for more information about the case or to participate online, please visit: www.rmclasslaw.com/cases/alc or contact richard a. maniskas, esquire toll-free at (877) 316-3218, or by e-mail at rmaniskas@rmclasslaw.com. for more information about class action cases in general or to learn more about ryan & maniskas, llp, please visit our website: www.rmclasslaw.com. ryan & maniskas, llp is a national shareholder litigation firm. ryan & maniskas, llp is devoted to protecting the interests of individual and institutional investors in shareholder actions in state and federal courts nationwide.
