Medical Properties Trust Faces Potential Class Action Lawsuit Over Misleading Statements about Recapitalization Transaction

The lawsuit alleges that the firm misled investors about regulatory approval prospects of a recapitalization deal with Prospect Medical Holdings, leading to a significant decline in its stock price when the truth was revealed.

• Medical Properties Trust, Inc. ("MPW") is facing a lawsuit, alleging that the firm misled investors about regulatory approval prospects of a recapitalization deal with Prospect Medical Holdings.
• The lawsuit alleges that MPW misrepresented the regulatory process for the deal's approval, which was subject to approval by the Department of Managed Health Care of the Health and Human Services Agency of the State of California ("DMHC").
• The DMHC reportedly put the recapitalization transaction on hold in July 2023, but MPW did not disclose this to shareholders in its Q2 results or its quarterly report filed with the SEC.
• The truth about the status of the recapitalization transaction's approval was revealed on August 18, 2023, in an article published by the Wall Street Journal, causing MPW's stock price to fall $0.57 per share, or 7.6%, to close at $6.93 per share.
• Investors who purchased or acquired MPW securities between May 23, 2023, and August 17, 2023, have until November 28, 2023, to seek the role of lead plaintiff in the federal securities class action that has been filed against the company.

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