NEW YORK, April 14, 2023 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities who purchased the securities of Medical Properties Trust, Inc. (“MPT” or the “Company”) (NYSE: MPW) between March 1, 2022 and February 22, 2023, both dates inclusive (the “Class Period”).
MPT operates as a real estate investment trust (“REIT”) that leases its facilities under long-term leases to providers of healthcare services, such as operators of general acute care hospitals, behavioral health facilities, inpatient physical rehabilitation facilities, long-term acute care hospitals, and freestanding ER/urgent care facilities.
Prospect Medical Holdings, Inc. (“Prospect”) leases and operates thirteen (13) of MPT’s facilities. As of December 31, 2021, Prospect was MPT’s third largest tenant, representing 7.3% of its total assets. As a tenant, Prospect is required to pay all ongoing operating expenses of the facility and for any desired expenditures.
The Complaint alleges that Defendants failed to disclose that: (1) Prospect was facing significant pressures affecting the profitability of its Pennsylvania properties; (2) as a result, there was a significant risk that Prospect would be unable to meet its rental obligations owed to MPT; and (3) “given the elongated timing of the Pennsylvania recovery,” MPT was reasonably likely to record an impairment charge to the real estate value of the Pennsylvania properties.
On February 23, 2023, MPT issued a press release reporting its fourth quarter and full year 2022 financial results. MPT disclosed an impairment of about $171 million on four properties leased to Prospect as well as a write off of about $112 million in unbilled rent for the same client.
Investors who purchased or otherwise acquired shares of MPT should contact the Firm prior to the June 12, 2023 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
Please visit our website at http://www.gme-law.com for more information about the firm.
