Omega Healthcare Investors, Inc. (NYSE: OHI)
A class action has been commenced on behalf of purchasers of Omega Healthcare Investors, Inc. (NYSE: OHI) common stock between February 8, 2017 and October 31, 2017 (the “Class Period”).
The complaint charges Omega and certain of its officers with violations of the Securities Exchange Act of 1934. Omega is a self-administered real estate investment trust that invests in income-producing healthcare facilities, including long-term care facilities located in the United States and the United Kingdom.
The complaint alleges that throughout the Class Period, defendants made materially false and misleading statements and/or failed to disclose material adverse facts about the Company’s business, operations and prospects. Specifically, defendants failed to disclose that the financial and operating results of certain of the Company’s operators were deteriorating, which was causing these operators to experience worsening liquidity issues that were significantly impacting the operators’ ability to make timely rent payments, and that, as a consequence, certain of the Company’s direct financing leases were impaired and certain receivables were uncollectible. As a result of defendants’ false statements and/or omissions, Omega securities traded at artificially inflated prices during the Class Period, with the Company’s stock reaching a high of close to $35 per share.
On October 30, 2017, the Company announced its financial results for the third quarter of 2017. On October 31, 2017, the Company held a conference call to discuss its results. On the call, Daniel J. Booth, the Company’s COO, stated that Omega was experiencing “operator performance issues,” including issues with Signature Healthcare, one of the Company’s top-ten operators. On the same call, Robert O. Stephenson, the Company’s CFO, stated that operating revenue for the quarter was approximately $220 million, compared to $225 million for the third quarter of 2016, and that “[t]he decrease was primarily a result of placing [one of its operators,] Orianna [Health Systems,] on a cash basis,” which caused the Company to record no Orianna revenue for the quarter. Stephenson also stated that the Company was lowering its 2017 adjusted funds from operations guidance due, in part, to “the temporary loss of Orianna revenue for both the third and fourth quarters” and because the Company had placed another operator, Daybreak Venture, LLC, on a cash basis effective September 1, 2017. On this news, the price of the Company’s stock fell $2.11 per share, or nearly 7%, to close at $28.86 per share on October 31, 2017.
If you are a current shareholder and purchased stock between February 8, 2017 and October 31, 2017, and would like to discuss your options of exercising your rights as a shareholder, please contact us.
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