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Oklahoma City, OK (July 1, 2020) – On June 25, 2020, a securities class action lawsuit was filed in the United States District Court for the Middle District of Tennessee against Brookdale Senior Living Inc. (NYSE: BKD). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is August 10, 2016 through April 29, 2020. More specifically, the complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational, and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Brookdale’s financial performance was sustained by, among other things, the Company’s purposeful understaffing of its senior living communities; (ii) the foregoing conduct subjected Brookdale to an increased risk of litigation and, once revealed, was foreseeably likely to have a material negative impact on the Company’s financial results and reputation; (iii) as a result, the Company’s financial results were unsustainable; and (iv) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On April 30, 2020, Nashville Business Journal reported that a proposed class-action lawsuit had been filed against Brookdale in this Judicial District, which accused the Company of, among other things, purposeful “chronically insufficient staffing” at its facilities to meet financial benchmarks since at least April 24, 2016. According to the lawsuit, Brookdale misled residents and their families when it promised to provide basic care and daily living services. The lawsuit also claims that the proposed class of plaintiffs “have not received the care and services they paid for.” The lawsuit asks for damages and Brookdale to “stop the unlawful and fraudulent practices.”
On this news, Brookdale’s stock price fell $0.56 per share, or 15.22%, over two trading sessions, closing at $3.12 per share on May 1, 2020.
Plaintiff seeks to recover damages on behalf of all Brookdale Senior Living Inc. shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Monday, August 24, 2020 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.
If you wish to discuss this action, obtain further information and participate in this or any other securities litigation, or should you have any questions or concerns regarding this notice or preservation of your rights, please contact: Robin Hester at firstname.lastname@example.org