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id: 837

Medical Properties Trust (MPW) Undisclosed Deal Suspension Case

S.D. New York
Case number
23 May 2023
Class period Start
17 Aug 2023
Class period End
28 Nov 2023
Lead Plaintiff motion deadline
  • WSJ revealed that the regulator suspended the Medical Properties and Prospect transaction in July 2023. However, MPT didn't disclose it in recent reports.
  • On this news, $MPW fell 7.6% losing $340M of its shareholder value.
  • Investors suspect MPT hid the transaction suspension, resulting in losses for them once the truth was revealed.
On August 18, 2023, the Wall Street Journal reported that the recapitalization transaction between Medical Properties Trust and Prospect had been halted since July 20, 2023, following an order from a regulatory agency in California.

Meanwhile, MPT did not reveal the regulatory order when announcing its Q2 results on August 8, 2023, or in the quarterly report submitted to the SEC on August 9, 2023.

On this news, $MPW fell 7.6% and lost over $340 million of its market capitalization, damaging shareholders.
  • On May 23, 2023, MPT announced a transaction pursuant to which it would take an equity stake in Prospect Medical’s managed care business in lieu of cash payment by Prospect of hundreds of millions of dollars in outstanding loans, and unpaid rent and interest owed to MPT.
  • On August 8, 2023, MPT stated that the proposed transaction with Prospect had reduced losses by $68 million based on the receipt of an equity stake in Prospect’s managed care business in lieu of payment of contractually owed rent and interest.
Now, investors have reasons to suspect MPT hid the transaction suspension, resulting in losses for them once the truth was revealed.

Case Status
Lead Plaintiff Appointed
Alleged Offence
Misleading Statements
Financial Misrepresentation
Failure to Disclose
Suspected Party
Investment Bank
Service Provider
Security Type
Trade Direction
Shock Event Date
18 August 2023
Filing date
29 September 2023
Lead Plaintiff Deadline
28 November 2023
Collecting participants…

Medical Properties Trust Inc

Medical Properties Trust, Inc. is a self-advised real estate investment trust formed in 2003 to acquire and develop net-leased hospital facilities. From its inception in Birmingham, Alabama, the Co...

    Real Estate
    REIT - Healthcare Facilities
    1000 Urban Center Drive, Birmingham, AL, United States, 35242-2225