The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Medical Properties Trust, Inc. (MPW) Investors

LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Medical Properties Trust, Inc. (“MPW” or the “Company”) (NYSE: MPW) securities between May 23, 2023 and August 17, 2023, inclusive (the “Class Period”). MPW investors have until November 28, 2023 to file a lead plaintiff motion.

If you are a shareholder who suffered a loss, click here to participate.

On August 18, 2023, the Wall Street Journal (“WSJ”) reported that the Department of Managed Health Care of the Health and Human Services Agency of the State of California (“DMHC”) had issued an order to put MPW’s recapitalization transaction with Prospect Medical Holdings, Inc. (“Prospect”) on hold in order to obtain further information. The WSJ article highlighted the negative impact that halting the recapitalization transaction could have on both MPW and Prospect, especially if the deal is permanently rejected.

On this news, MPW’s stock price fell $0.57, or 7.6%, to close at $6.93 per share on August 18, 2023, thereby injuring investors.

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 that: (1) the Recap Transaction was subject to regulatory approval and had in fact been placed on hold by the DMHC; (2) accordingly, MPW had misrepresented the regulatory process for the Recap Transaction’s approval; (3) as a result of the foregoing, MPW overstated the approval prospects and benefits of the Recap Transaction; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

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If you purchased MPW securities during the Class Period, you may move the Court no later than November 28, 2023 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased MPW 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 Frank R. Cruz, of The Law Offices of Frank R. Cruz, 2121 Avenue of the Stars, Suite 800, Los Angeles, California 90067 at 310-914-5007, by email to [e-mail], or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.

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