NEW YORK--(BUSINESS WIRE)--
Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Omega Healthcare Investors, Inc. (“Omega” or the “Company”) (NYSE:OHI) of the January 16, 2018 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 Omega stock or options between February 8, 2017, and October 31, 2017 and would like to discuss your legal rights, click here: www.faruqilaw.com/OHI. 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 protected].
The lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of all those who purchased Omega securities between February 8, 2017, and October 31, 2017 (the “Class Period”). The case, Gronich v. Omega Healthcare Investors, Inc. et al, No. 1:17-cv-08983 was filed on November 16, 2017.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) financial and operating results of certain of the Company’s operators were deteriorating; (2) certain of the Company’s operators were experiencing worsening liquidity issues that were significantly impacting the operators’ ability to make timely rent payments; and (3) as a result, certain of the Company’s direct financing leases were impaired and certain receivables were uncollectible.
Specifically, on July 26, 2017, the Company reported its second quarter 2017 financial results. During a conference call held the next day by the Company, Chief Operating Officer Daniel Booth stated that the Company continued “to see certain regional operators struggle with various operational pressures” and that two of the Company’s top ten private operators had seen margins and coverages decline, which created liquidity concerns.
On this news, the Company’s share price declined from $33.45 on July 26, 2017, to $32.10 on July 27, 2017 – a $1.35 or a 4.04% drop.
Then, on October 30, 2017, Omega announced its third quarter 2017 financial results. The next day, the Company held a conference call to discuss its results, wherein Daniel Booth disclosed that the Company “[continued] to experience specific operator performance issues” in addition to issues with Signature Healthcare, due to “liquidity issues [that] are impacting the ability of these operators to pay rent on a timely basis.” During the same call, Robert Stephenson, the Company’s Chief Financial Officer, stated that the Company’s decrease in operating revenue “was primarily a result of placing Orianna on a cash basis”.
Following the announcement, Omega’s share price fell from $30.97 per share on October 30, 2017 to a closing price of $28.86 on October 31, 2017 - a $2.11 or a 6.81% 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 Omega’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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