Hospital landlord group faces increasing pressure from lawyers, investors

Lawyers representing investors who may have lost significant money over the way a $375 million deal was presented by Medical Properties Trust are encouraging such investors to submit their losses, according to a Nov. 8 InvestorsObserver report.

The allegation centers around new financing for Los Angeles-based Prospect Medical Holdings, which MPT presented as a done deal but was in fact placed on hold by California regulators. In response to a Wall Street Journal story Aug. 18 reporting the nondisclosure, MPT shares tumbled.

"We're focused on investors' losses and investigating whether senior management had a duty to disclose the California regulator's hold order," said Reed Kathrein, partner at legal firm Hagens Berman.

Birmingham, Ala.-based MPT is the country's largest hospital landlord, with Prospect Medical Holdings its third-largest tenant.

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.


Featured Whitepapers

Featured Webinars