HAGENS BERMAN, NATIONAL TRIAL ATTORNEYS, Encourages Welltower Inc. (WELL) Investors with Significant Losses to Contact Firm’s Attorneys, Firm Investigating Possible Securities Law Violations
SAN FRANCISCO, Dec. 19, 2022 (GLOBE NEWSWIRE) -- Hagens Berman urges Welltower Inc. (NYSE: WELL) investors with significant losses to submit your losses now.
Welltower Inc. (NYSE: WELL) Investigation:
The investigation focuses on Welltower’s statements about the quality of its skilled nursing facilities, its relationship with its largest operating tenant ProMedica, and its so-called solution addressing problems presented by ProMedica’s financial distress.
Welltower announced its solution on Nov. 7, 2022, when it revealed that it was transferring 147 skilled nursing facilities operated by ProMedica into a new joint venture owned 85% by Welltower and 15% by a healthcare operator called Integra Health. In addition, the company said that under the deal its combined cash rent increases over 4% relative to total current contractual rent from the existing ProMedica Senior Care joint venture.
Welltower’s solution came into serious question on Dec. 7, 2022, when Hindenburg Research published a research report entitled “Welltower: Exposing The Shell Game.” Hindenburg concluded “[o]verall we think Welltower is an overpriced-to-perfection REIT obfuscating distressed assets, raising questions about both its portfolio and the credibility of management as it attempts to raise capital from investors.” Among other things, Hindenburg alleges: (1) “the new JV partner is little more than a sham designed to obfuscate weakness in the portfolio;” (2) a “Senior ProMedica employee told us Integra had no operating experience and came in after [ProMedica/Welltower] couldn’t find genuine operators;” and, (3) Integra’s CEO claims to have raised over $3 billion of capital in his capacity as CEO and founder of Perigrove, a private equity firm, are either exaggerated or the capital was illegally raised.
In response, the price of Welltower shares fell as much as $4.18, or down over 6%, during intraday trading on Dec. 7, 2022.
“We’re focused on investors’ losses and whether Welltower has concealed weaknesses in its portfolio,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Welltower and have significant losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Welltower should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email WELL@hbsslaw.com.
About Hagens Berman
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Reed Kathrein, 844-916-0895