Robbins Arroyo LLP: Omega Healthcare Investors, Inc. (OHI) Misled Shareholders According to a Recently Filed Shareholder Lawsuit
SAN DIEGO & HUNT VALLEY, Md.--(BUSINESS WIRE)--Aug 24, 2018--Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of Omega Healthcare Investors, Inc. (NYSE: OHI) have filed a complaint against the company’s officers and directors for alleged breaches of fiduciary duties, abuse of control, gross mismanagement, and violations of the Securities Exchange Act of 1934. Omega is a real estate investment trust that invests in the long-term healthcare industry, primarily in skilled nursing and assisted living facilities.
View this information on the law firm’s Shareholder Rights Blog: https://www.robbinsarroyo.com/omega-healthcare-investors-inc-aug-2018
Omega Accused of Misleading Investors About Its Financial Condition
According to the complaint, Omega’s second largest operator, Orianna Health Systems, represented 7% of Omega’s overall investment portfolio, with a gross investment of over $619 million. In 2016 and early 2017, Orianna experienced operational pressures that dramatically affected its profitability and prevented it from paying rent to Omega. Although Orianna was delinquent on rent payments in addition to its own real estate taxes, Omega told investors that Orianna was on the road to recovery and lent Orianna money to pay its rent delinquencies to Omega. The truth was finally revealed when Omega recorded a $194.7 million impairment on its direct financing leases with Orianna, and $9.5 million in provision for uncollectible accounts related to Orianna. On this news, Omega’s stock fell nearly 7% to close at $28.86 per share on October 31, 2017.
Omega Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm’s website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Robbins Arroyo LLP provides a FREE investment portfolio monitoring service, Stock Watch.
Attorney Advertising. Past results do not guarantee a similar outcome.
View source version on businesswire.com:https://www.businesswire.com/news/home/20180824005369/en/
CONTACT: Robbins Arroyo LLP
(619) 525-3990 or Toll Free (800) 350-6003
KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA MARYLAND
INDUSTRY KEYWORD: PROFESSIONAL SERVICES LEGAL
SOURCE: Robbins Arroyo LLP
Copyright Business Wire 2018.
PUB: 08/24/2018 02:07 PM/DISC: 08/24/2018 02:08 PM