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.
IF YOU PURCHASED OR ACQUIRED THE PUBLICLY-TRADED CLASS A COMMON STOCK OF ASSISTED LIVING CONCEPTS, INC. ("ALC") DURING THE PERIOD BETWEEN MARCH 4, 2011 AND AUGUST 6, 2012, INCLUSIVE (THE "CLASS PERIOD"), YOU MAY BE ENTITLED TO A PAYMENT FROM A CLASS ACTION SETTLEMENT.
IMPORTANT DATES AND DEADLINES
SUBMIT A CLAIM FORM
Postmarked no later than Thursday, February 6, 2014
Received no later than November 29, 2013
OBJECT TO THE SETTLEMENT
Received no later than November 29, 2013 and filed with the Court no later than November 29, 2013
December 19, 2013 at 10:00 a.m.
United States District Court for the Southern District of New York
Receive no payment
The Court’s Settlement Hearing
The Court will hold a Settlement Hearing at 10:00 a.m. on December 19, 2013, at the United States District Court for the Eastern District of Wisconsin, 517 East Wisconsin Ave., Courtroom 425, Milwaukee, WI 53202. At this hearing, the Honorable J.P. Stadtmueller will consider whether the Settlement is fair, reasonable, and adequate. The Court also will consider the proposed Plan of Allocation for the Net Settlement Fund and the application of Lead Counsel for attorneys’ fees and reimbursement of expenses.
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 Benefits
In exchange for the Settlement and the release of the Released Claims against the Released Persons, the Defendants have agreed to create a $12 million cash fund, which will earn interest, to be divided after deduction of Court-awarded attorneys’ fees and expenses, settlement administration costs, and any applicable Taxes (the “Net Settlement Fund”) among all Class Members who send in timely and valid Claim Forms that are approved for payment by the Court (“Authorized Claimants”).
Each Authorized Claimant’s share of the Net Settlement Fund will depend on the total number of ALC Stock shares represented by the valid Claim Forms submitted to the Claims Administrator, and the aggregate amount of those claims relative to the Net Settlement Fund. Each Authorized Claimant’s share of the Net Settlement Fund will also depend on how many ALC Stock shares the Claimant purchased or acquired during the Class Period, the price, and when the Claimant purchased or acquired and sold or disposed of them. The proposed Plan of Allocation can be found on Page 5 of the Notice.
The Rights of Class Members
If you are a Class Member, you have the following options:
Submit a Claim Form
If you are a potential Class Member, to be eligible to share in the distribution of the Settlement proceeds, you must timely submit a valid Claim Form, which can be found here, postmarked no later than February 6, 2014. If you are a potential Class Member and do not submit a valid Claim Form, you will not be eligible to share in the distribution of the Net Settlement Fund, but you will nevertheless be bound by any judgments or orders entered by the Court in the Action.
Exclude yourself from the Settlement
If you are a potential Class Member, but wish to exclude yourself from the Class, you must submit a written request for exclusion in accordance with the instructions set forth in the Notice, received no later than November 29, 2013. If you are a potential Class Member and do not timely exclude yourself from the Class, you will be bound by any judgments or orders entered by the Court in the Action.
Object to the Settlement
Any objections to the proposed Settlement, Plan of Allocation, or Lead Counsel’s application for attorneys’ fees and reimbursement of expenses must be mailed to the Court, Lead Counsel for the Plaintiffs, and counsel for Defendants in accordance with the instructions set forth in the Notice and received on or before November 29, 2013.
This website and the Notice summarizes the proposed 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. You may also contact the Claims Administrator or Lead Counsel for further information regarding this Settlement:
c/o A.B. Data,
PO Box 170500
Milwaukee, WI 53217
Niki L. Mendoza,
LITOWITZ BERGER & GROSSMANN LLP
12481 High Bluff
Drive, Suite 300
San Diego, CA