BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Brookdale Senior Living Inc. ("Brookdale" or the "Company") (NYSE: BKD) securities between August 10, 2016 and April 29, 2020, inclusive (the “Class Period”). Brookdale investors have until August 24, 2020 to file a lead plaintiff motion.
Investors suffering losses on their Brookdale investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to email@example.com.
On April 30, 2020, Nashville Business Journal reported that a proposed class action lawsuit had been filed against Brookdale, accusing the Company of, among other things, purposeful “chronically insufficient staffing” at its facilities in an effort to meet financial benchmarks since at least April 24, 2016. According to the lawsuit, the Company misinformed both residents and their families in promising to provide daily living services and basic care. The lawsuit also claims that the proposed class of plaintiffs “have not received the care and services they paid for.”
On this news, the Company’s share price fell $0.56 per share, or over 15%, over two trading sessions, to close at $3.12 per share on May 1, 2020.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that Brookdale’s financial performance was sustained by, among other things, the Company’s purposeful understaffing of its senior living communities; (2) that the foregoing conduct subjected Brookdale to an increased risk of litigation and, once revealed, was foreseeably likely to have a material negative impact on the Company’s financial results and reputation; (3) as a result, the Company’s financial results were unsustainable; and (4) as a result, the Company’s public statements were materially false and misleading at all relevant times.
If you purchased Brookdale securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to firstname.lastname@example.org, or visit our website at www.howardsmithlaw.com.
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