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Medical Properties Trust class action lawsuit overview:Â
- Who: Fiyyaz Pirani filed a class action lawsuit against Medical Properties Trust Inc. (MPT).Â
- Why: Pirani claims MPT misled investors by allegedly failing to disclose that one of its largest tenants would not be able to meet its rental obligations for four Pennsylvania hospital properties leased to them.Â
- Where: The class action lawsuit was filed in Alabama federal court
Birmingham-based Medical Properties Trust (MPT) failed to disclose to investors that one of its largest tenants would be unable to meet its rental obligations, a new class action lawsuit alleges.Â
MPT is a real estate investment trust that offers long-term leases of its facilities to healthcare providers including operators of behavioral health facilities, general acute care hospitals, and long-term acute care hospitals, among others.Â
Plaintiff Fiyyaz Pirani claims MPT misled investors by allegedly concealing that four hospital properties leased to Prospect Medical Holdings — which operates 13 MPT facilities — had an impairment of around $171 million and around $112 million in unbilled rent.Â
The four hospital properties are located in Pennsylvania and were announced in 2019 as part of a $1.55 billion investment by MPT in a total of 14 hospitals in 2019, reports AL.com.
Shares of MPT stock, meanwhile, dropped 8.7% on Feb. 23 — the same day the company’s chief operating officer stepped down — after MPT disclosed the information in its fourth quarter and full year 2023 financial results, according to a news release.Â
MPT stock shares lost more than $1.2 billion in value by March 1, says class action
MPT’s stock price would go on to drop even further, and, by March 1, had fallen nearly 18% in total and lost more than $1.2 billion in value, reports AL.com.Â
Pirani wants to represent a nationwide class of all persons or entities that purchased or otherwise acquired MPT common stock from between March 1, 2022 and Feb. 22, 2023.
MPT is accused of violating the Securities Exchange Act of 1934 for allegedly failing to make required disclosures to its investors. The plaintiff is demanding a jury trial and requesting an award of damages for himself and all class members.Â
A separate class action lawsuit, filed by Pirani against Slack Technologies, is currently under review by the US Supreme Court, after the company attempted to dismiss claims made under Section 11 and Section 12 of the Securities Act.Â
Do you own shares of MPT stock? Let us know in the comments!Â
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3 thoughts onClass action alleges Medical Properties Trust misled investors
How do I join the MPW class action?
How do I join the class lawsuit ?
I own 500 shares of common stock of Medical properties trust during the allowed time period.
You can contact me at:dfreed1014@yahoo.com
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