NEW YORK - (NewMediaWire) - August 06, 2020 - Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Brookdale Senior Living Inc. (“Brookdale” or the “Company”) (NYSE:BKD) of the August 24, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Brookdale stock or options between August 10, 2016 and April 29, 2020 and would like to discuss your legal rights, click here: www.faruqilaw.com/BKD. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to email@example.com.
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Attn: Richard Gonnello, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
The lawsuit has been filed in the U.S. District Court for the Middle District of Tennessee on behalf of all those who purchased Brookdale securities between August 10, 2016 and April 29, 2020 (the “Class Period”). The case, Posey v. Brookdale Senior Living, Inc. et al., No. 3:20-cv-00543 was filed on June 25, 2020, and has been assigned to District Judge Aleta A. Trauger.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) Brookdale’s financial performance was sustained by, among other things, the Company’s purposeful understaffing of its senior living communities; (2) 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; (3) as a result, the Company’s financial results were unsustainable; and (4) 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, which accused the Company of, among other things, purposeful “chronically insufficient staffing” at its facilities in an effort 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 for Brookdale to “stop the unlawful and fraudulent practices.”
On this news, the Company's stock price fell, over two trading sessions, from $3.68 per share on April 30, 2020 to $3.12 per share on May 1, 2020: a $0.56 or 15.22% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative 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. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Brookdale’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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