Brookdale Senior Living Inc. Class Action Lawsuit
- Company Name
- Brookdale Senior Living Inc.
- Stock Symbol
- Class Period
- August 10, 2016 to April 29, 2020
- Middle District of Tennessee
The Brookdale Senior Living Inc. class action lawsuit charges Brookdale Senior Living and certain of its current and former officers with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers of Brookdale Senior Living securities between August 10, 2016 and April 29, 2020, inclusive (the “Class Period”). The Brookdale Senior Living class action lawsuit was commenced on June 25, 2020 in the Middle District of Tennessee and is captioned Posey v. Brookdale Senior Living Inc., No. 20-cv-00543.
Brookdale Senior Living is the nation’s largest senior-living community operator, with $4 billion in reported revenue in 2019.
The complaint filed in Posey v. Brookdale Senior Living Inc. alleges that defendants made materially false and/or misleading statements, as well as failed to disclose that: (i) “Brookdale[ Senior Living]’s financial performance was sustained by, among other things, the Company’s purposeful understaffing of its senior living communities”; (ii) “the foregoing conduct subjected Brookdale [Senior Living] to an increased risk of litigation and, once revealed, was foreseeably likely to have a material negative impact on [Brookdale Senior Living’s] financial results and reputation”; (iii) “as a result, [Brookdale Senior Living’s] financial results were unsustainable”; and (iv) “as a result, [Brookdale Senior Living’s] public statements were materially false and misleading at all relevant times.”
On April 30, 2020, Nashville Business Journal reported that a proposed class action lawsuit had been filed against Brookdale Senior Living accusing Brookdale Senior Living of, among other things, purposeful “chronically insufficient staffing” at its facilities in an effort to meet financial benchmarks since at least April 24, 2016. According to the lawsuit, Brookdale Senior Living misled residents and their families when it promised to provide basic care and daily living services. The lawsuit also claims that the proposed class of plaintiffs “have not received the care and services they paid for.” The lawsuit asks for damages and for Brookdale Senior Living to “stop the unlawful and fraudulent practices.” The complaint filed in Posey v. Brookdale Senior Living Inc. alleges that, on this news, Brookdale Senior Living’s stock price fell more than 15% over two trading sessions.
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