Paul, Weiss is widely recognized as having one of the nation’s preeminent securities litigation and regulatory practices. For two decades, our lawyers have guided global corporations and financial institutions through a series of “bet-the-company” securities-related crises, consistently reducing or eliminating their most damaging claims and negotiating favorable resolutions.
Paul, Weiss Wins Dismissal of Securities Claims Against HCP
- Client News
- November 22, 2019
Practices
Paul, Weiss secured the dismissal of a securities fraud class action against real estate investment trust HCP, Inc. (now Healthpeak Properties, Inc.) and three former HCP executives.
Plaintiffs alleged that HCP made misstatements or omissions about its passive, minority interest in ManorCare, its largest tenant, which purportedly was engaged in Medicare billing fraud. They also alleged that HCP overstated various line items in its financial statements and made false and misleading statements when it failed to disclose that ManorCare was not financially viable as a result of its alleged unlawful billing practices.
In a 14-page opinion dismissing the case, U.S. District Judge Jeffrey Helmick of the Northern District of Ohio applied seven factors that courts in the Sixth Circuit consider in analyzing scienter allegations, concluding that, for each factor and holistically, plaintiffs had failed to adequately plead scienter.
The Paul, Weiss team included litigation partners Daniel Kramer and Audra Soloway, who argued the motion.