INVESTOR ALERT: Edelson Lechtzin LLP Urges Medical Properties Trust, Inc. (“MPT”) (NYSE: MPW) Shareholders with Substantial Losses to Consider Seeking Leadership in the Securities Fraud Class Action
NEWTOWN, PA, April 14, 2023 — The law firm of Edelson Lechtzin LLP is investigating securities fraud claims on behalf of all purchasers and holders of Medical Properties Trust, Inc. (“MPT” or the “Company”) (NYSE: MPW) common stock between March 1, 2022, and February 22, 2023, both dates inclusive (the “Class Period”).
Investors who purchased Medical Properties Trust, Inc. common stock may move the U.S. District Court for the Southern District of New York to appoint them as lead plaintiff, no later than June 12, 2023. Current holders of MPT stock may pursue corporate governance reforms. Please contact Edelson Lechtzin LLP at 844-696-7492 to discuss your investment losses, or by e-mail at [email protected]. A copy of the class action complaint can be viewed HERE.
Background on Medical Properties Trust, Inc.
Headquartered in Birmingham, Alabama, MPT, founded in 2003, is a real estate investment trust that leases its facilities to providers of healthcare services. Examples of MPT facilities include long-term acute care hospitals, regional and community hospitals, medical office buildings, and rehabilitation hospitals. They are the second largest non-governmental owner of hospitals in the world.
The Securities Fraud Claims
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 failed to disclose to investors that: (i) Prospect Medical Holdings, Inc. (“Prospect”), a healthcare services company that leases and operates 13 of MPT’s facilities, was facing significant pressures affecting the profitability of its Pennsylvania properties; (ii) as a result, there was a significant risk that Prospect would be unable to meet rental obligations it owed to MPT; (iii) “given the elongated timing of the Pennsylvania recovery,” the Company was reasonably likely to record an impairment charge to the real estate value of the Pennsylvania properties.
Prospect was MPT’s third largest tenant, representing 7.3% of its total assets, as of December 31, 2021. Prospect is required to pay all ongoing operating expenses of the facility and for any desired expenditures as a tenant.
On February 23, 2023, before the markets opened, MPT issued a press release detailing its fourth quarter and full year 2022 financial results. MPT disclosed an impairment of about $171 million on four properties leased to Prospect as well as a write-off of almost $112 million in unbilled rent for the same client. On this news, MPT’s stock price plummeted $0.80, or 8.7%, to close at $11.14 per share on February 23, 2023, injuring investors.
For more information, please contact:
Marc H. Edelson, Esq.
Eric Lechtzin, Esq.
EDELSON LECHTZIN LLP
411 S. State Street, Suite N-300
Newtown, PA 18940
Phone: 844-696-7492 or 215-867-2399 ext. 1
Email: [email protected]
Email: [email protected]
Edelson Lechtzin LLP is a national class action law firm with offices in Pennsylvania and California. In addition to cases involving securities and investment fraud, our lawyers focus on class and collective litigation in cases alleging violations of the federal antitrust laws, employee benefit plans under ERISA, wage theft and unpaid overtime, data breaches, consumer fraud, and dangerous and defective drugs and medical devices.
This press release may be considered Attorney Advertising in some jurisdictions. No class has been certified in this case, so you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. Your ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.