View this information on the law firm’s Shareholder Rights Blog: www.robbinsarroyo.com/shareholders-rights-blog/hcp-inc-apr-17
HCP Accused of Covering Up Its Client’s Billing Fraud Practices
According to the complaint, HCP was highly dependent on ManorCare, a nursing home operator that served as HCP’s most significant client. Specifically, 30% of HCP’s revenue was derived from its leases with ManorCare and 40% of HCP’s real estate assets were subject to long-term leases with ManorCare. HCP touted that ManorCare was a reliable partner, stating that ManorCare had “a long history of compliance with regulations” and that ManorCare’s billing practices were “to the standard one would want.” However, according to the complaint, HCP officials were allegedly aware that ManorCare was engaged in rampant billing fraud, generating over
The complaint alleges that as a result of ManorCare’s billing fraud, ManorCare’s reported revenue and earnings were false and its consolidated statements did not comply with Generally Accepted Accounting Principles. Even after the whistleblower actions and DOJ action were revealed, ManorCare and HCP denied that any wrongdoing had occurred. HCP revealed the truth in a series of corrective disclosures, stating that it had recorded two impairment charges totaling
HCP Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney
View source version on businesswire.com: http://www.businesswire.com/news/home/20170414005291/en/
LKandinov@robbinsarroyo.com
www.robbinsarroyo.com
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