San Diego, CA -- (ReleaseWire) -- 09/24/2012 -- A lawsuit was filed by a current investor in shares of Assisted Living Concepts, Inc. (NYSE:ALC) against certain executives, directors and former directors of Assisted Living Concepts, Inc. alleging Assisted Living Concepts, Inc. cost shareholders $100 million by allegedly consistently and systematically violating the laws in numerous states in its assisted living centers.
Investors who are current long term stockholders of shares of Assisted Living Concepts, Inc. (NYSE:ALC), have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The plaintiffs alleges that the defendants allegedly failed to take action to correct widespread deficiencies despite repeated alleged violations, fines and warnings from regulators throughout the entire period of time that Assisted Living Concepts has been a publicly traded company.
The plaintiff says that a landlord for eight of Assisted Living Concepts’ homes filed a lawsuit in April this year alleging that Assisted Living Concepts breached its lease by failing to comply with regulatory requirements.
On May 4, 2012 Assisted Living Concepts, Inc said in a statement that on May 3, 2012 its Board of Directors determined to investigate possible irregularities in connection with the Company’s lease with Ventas Realty, Limited Partnership, the landlord for eight assisted living facilities operated by Assisted Living Concepts, and retained counsel for such purpose.
The plaintiff says that as a result of the complaint by the landlord Assisted Living Concepts was forced to spend $97 million to purchase the properties, plus an additional $3 million 'litigation settlement fee,' in order to resolve the action with its landlord.
Then on August 7, 2012, Assisted Living Concepts, Inc said that on August 2, 2012, it was informed by Securities and Exchange Commission (“SEC”) that the SEC staff is conducting an investigation relating to Assisted Living Concepts and as part of this investigation, the SEC issued a subpoena to the Company. Assisted Living Concepts, Inc said that the subpoena requires it to produce documents on a number of topics, including, among others, compliance with occupancy covenants in the now-superseded lease with Ventas Realty, Limited Partnership and leasing of units for employee use.
The plaintiff alleges that the defendants willfully approved the company's allegedly illegal and improper conduct and allegedly ignored the obvious and pervasive problems with the company's legal and regulatory compliance, and allegedly failed to make a good faith effort to correct the problems or prevent their recurrence. The plaintiff seeks costs and damages for alleged breach of fiduciary duty.
NYSE:ALC shares fell from over $19 on May 3, 2012 to as low as $7.01 per share on August 13, 2012.
On September 21, 2012, NYSE:ALC shares closed at $7.92 per share, which is significantly below its current 52 week High of $20.33 per share.
Those who are current long term stockholders of shares of Assisted Living Concepts, Inc. (NYSE:ALC), have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego