The information contained on this web page is only a summary of information presented in more detail in the Notice of Pendency of Class Action and Proposed Settlement, Final Approval Hearing, and Motion for Attorneys’ Fees and Reimbursement of Litigation Expenses (the “Notice”), which you can access by clicking here.  Since this website is just a summary, you should review the Notice for additional details.

Your Legal Rights Are Affected Whether You Act Or Do Not Act.  Please read the Notice carefully.

What is this case about?

On August 29, 2012, this putative class action was filed in the United States District Court for the Eastern District of Wisconsin. The Complaint alleges that ALC and its subsidiaries operate licensed assisted living and senior living facilities across the United States, and that, among other things, Defendants made material misrepresentations and omissions in SEC filings and other public statements regarding ALC’s compliance with occupancy, operating and other covenants under the terms of a lease with Ventas Realty for eight assisted living residences; that ALC failed to disclose to investors uncorrected citations for serious regulatory violations, which led state regulators to serve notices of intent to revoke licenses for three Ventas Realty-leased facilities during the Class Period; and that when Defendants’ misrepresentations and omissions became apparent to investors, the price of ALC Stock dropped sharply, causing the Class to incur substantial losses.

Defendants have denied and continue to deny each and all of the claims alleged by Lead Plaintiff in the Action.  Defendants have expressly denied and continue to deny all charges of wrongdoing or liability against them arising out of any of the conduct, statements, acts or omissions alleged, or that could have been alleged, in the Action.  Defendants also have denied and continue to deny, among other things, the allegations that Lead Plaintiff or the Class have suffered any damage, or that Lead Plaintiff or the Class were harmed by the conduct alleged in the Complaint.  Defendants also have taken into account the uncertainty and risks inherent in any litigation, especially in a complex case such as this.  Nonetheless, Defendants have concluded that further conduct of the Action would be protracted and expensive, and that it is desirable that the Action be fully and finally settled in the manner and upon the terms and conditions set forth in the Stipulation.

The Settlement

On August 27, 2013, the parties reached an agreement to settle the action for $12 million in cash. On September 6, 2013, Lead Plaintiff filed its motion for preliminary approval of the settlement and on September 25, 2013, the Court granted Lead Plaintiff’s motion. On November 14, 2013, Lead Plaintiff filed its motion for final approval of the settlement and plan of allocation and on December 19, 2013, the Court granted Lead Plaintiff’s motion. The deadline for submitting claim forms was February 6, 2014.

The claims administration was completed in June 2018. On July 30, 2018, the Motion for Approval of Distribution Plan was filed. On August 10, 2018, the Court entered the Order Approving the Distribution Plan. The first distribution of the net settlement fund occurred in October 2018. The second distribution occurred in December 2021. The third distribution occurred in March 2024.

Further Information:
This website and the Notice summarizes the Settlement. For more details regarding this Settlement please reference the Stipulation dated September 6, 2013, or other documents filed in the case under the “Court Documents” link on the left.