NEW YORK, Nov. 29, 2017 /PRNewswire/ -- Kaplan Fox & Kilsheimer LLP
(www.kaplanfox.com) is investigating claims on behalf of investors
of Omega Healthcare Investors, Inc. ("Omega Healthcare" or the
"Company") (NYSE: OHI), a real estate investment trust (REIT) that
invests in income producing healthcare facilities. Investors
who purchased Omega Healthcare common stock may be affected.
A class action complaint has been filed in the United States
District Court for the Southern District of New York against Omega Healthcare and certain
officers on behalf of persons or entities that acquired Omega
Healthcare securities between February 8,
2017 and October 31, 2017,
inclusive (the "Class") alleging violations of the Securities
Exchange Act of 1934 ("Exchange Act").
On July 26, 2017, after the market
closed, the Company issued a press release announcing its second
quarter 2017 financial results. In connection with second
quarter results, the Company held a conference call on July 27, 2017 during which the Company discussed
operational issues at two of its top ten operators. Despite
liquidity concerns at these two operators, Omega Healthcare's Chief
Operating Officer, Daniel J. Booth
("Booth"), stated that "while the ultimate outcome of these two
portfolio issues could potentially cause a continuing but temporary
interruption of current rent and prompt further discussions, we
remain confident in both current management team's
expertise." Further, Booth stated that "we're confident that
the physical assets themselves and the strong markets within which
they are located provide comfort in the long-term longevity and
future success of these facilities." Additionally, despite
these concerns, the Company increased its 2017 guidance for
Adjusted Funds From Operations ("Adjusted FFO") to be between
$3.42 and $3.44 per diluted share
from Adjusted FFO between $3.40 and
$3.44 per diluted share given at the start of the Class
Period, February 8, 2017.
Then, on October 30, 2017, after
the market closed, Omega Healthcare issued a press release
announcing its third quarter 2017 financial results. For the
three-month period ended September 30,
2017, the Company reported operating revenue of $220 million compared to operating revenue of
$225 million for the same period in
2016, as well as a net loss of $137.5
million compared to net income of $82.1 million for the same period in 2016.
Among other things, Omega Healthcare reported approximately
$204 million of surprise impairments
related to the Company's Orianna Health Systems portfolio
("Orianna"), including $194.7 million
in impairments on direct financing leases related to Orianna.
Following these disclosures, the Company's stock price fell
$2.11 per share, or 6.8%, to close at
$28.86 per share on October 31, 2017.
The complaint alleges that throughout the Class Period,
defendants failed to disclose (1) that financial and operating
results of certain of the Company's operators were deteriorating,
(2) that, as a result, certain of the Company's operators were
experiencing worsening liquidity issues that were significantly
impacting the operators' ability to make timely rent payments, (3)
that, as a result, certain of the Company's direct financing leases
were impaired and certain receivables were uncollectible, and (4)
that, as a result of the foregoing, defendants' statements about
Omega Healthcare's business, operations, and prospects, were
materially false and/or misleading and/or lacked a reasonable
basis.
If you are a member of the proposed Class, you may move the
court no later than January 15, 2018
to serve as a lead plaintiff for the purported class. You
need not seek to become a lead plaintiff in order to share in any
possible recovery. If you would like to discuss the complaint
or our investigation, please contact us by emailing
pmayer@kaplanfox.com or by calling 800-290-1952.
This press release may be considered Attorney Advertising in
some jurisdictions under the applicable law and ethical rules.
Kaplan Fox & Kilsheimer LLP,
with offices in New York,
San Francisco, Los Angeles, Chicago and New
Jersey, has many years of experience in prosecuting investor
class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit
our website at www.kaplanfox.com. If you have any questions
about this Notice, the action, your rights, or your interests,
please contact:
Donald R. Hall
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
(800) 290-1952
(212) 687-1980
Fax: (212) 687-7714
E-mail: dhall@kaplanfox.com
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
350 Sansome Street, Suite 400
San Francisco, California
94104
(415) 772-4700
Fax: (415) 772-4707
E-mail: lking@kaplanfox.com
View original
content:http://www.prnewswire.com/news-releases/investor-alert-kaplan-fox-announces-investigation-of-omega-healthcare-investors-300563697.html
SOURCE Kaplan Fox &
Kilsheimer LLP