NYSE
HCP

HCP, Inc.

Shareholder Securities Fraud Litigation

Rigrodsky & Long, P.A. Announces A Securities Fraud Class Action Lawsuit Has Been Filed Against HCP, Inc. (NYSE: HCP)

Rigrodsky & Long, P.A. announces that a complaint has been filed in the United States District Court for the Northern District of Ohio on behalf of all persons or entities that purchased the common stock of HCP, Inc. (“HCP” or the “Company”) (NYSE: HCP) between March 30, 2015 and February 8, 2016, inclusive (the “Class Period”), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).

If you purchased shares of HCP during the Class Period, or purchased shares prior to the Class Period and still hold HCP, and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Timothy J. MacFall, Esquire or Peter Allocco of Rigrodsky & Long, P.A., 2 Righter Parkway, Suite 120, Wilmington, DE 19803 at (888) 969-4242; by e-mail to info@rl-legal.com.

The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements, and omitted materially adverse facts, about the Company’s business, operations and prospects.  Specifically, the Complaint alleges that the defendants concealed from the investing public that: (1) ManorCare was actively engaged in reimbursement billing fraud, in violation of federal and state laws; (2) as a result of ManorCare’s billing fraud, ManorCare’s reported revenue and earnings were false and ManorCare’s consolidated financial statements did not comply with GAAP; and (3) ManorCare’s billing fraud and the DOJ’s action against ManorCare put HCP’s lease revenue stream from ManorCare in jeopardy, and called into question the value of HCP’s ManorCare real estate assets and HCP’s equity stake in ManorCare.  As a result of defendants’ alleged false and misleading statements, the Company’s stock traded at artificially inflated prices during the Class Period.

According to the Complaint, the truth was revealed through a series of corrective disclosures, beginning on April 21, 2015, when HCP disclosed that the DOJ had intervened in the whistleblower lawsuits and filed a consolidated complaint.

Then, on February 9, 2016, HCP disclosed that its equity stake in ManorCare had been written down to zero, and that it had taken an $836 million non-cash impairment on its ManorCare lease assets and placed all of its ManorCare real estate assets on a “Watch List.”  HCP further revealed that HCP could no longer rely on ManorCare to pay its rent, and, as a result, had changed the way it accounted for lease revenue from ManorCare to a “cash only” basis.  HCP also disclosed skyrocketing legal costs incurred by ManorCare in defending against the whistleblower and DOJ lawsuits.

On this news, shares of HCP dropped over 16%, closing at $28.33 per share on February 9, 2016, on heavy trading volume.

If you wish to serve as lead plaintiff, you must move the Court no later than July 11, 2016.  A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  Any member of the proposed class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

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