Care Capital Properties, Inc. and seven high-ranking directors are the defendants in a proposed class action filed on behalf of public stockholders over alleged securities law violations. The case stems from a proposed transaction wherein Care Capital would be acquired by Sabra Health Care REIT, Inc. through a subsidiary and two other entities.
As with almost all securities law class actions, this complaint argues that statements made by the defendants to Care Capital’s stockholders omitted or misrepresented material information seemingly in favor of the proposed transaction. The lawsuit claims this misinformation chiefly concerns:
- Care Capital management’s projections, such as those utilized by financial advisors like Merrill Lynch, and Barclays Capital Inc. for analyses;
- The valuation analyses prepared by the aforementioned financial advisors complete with their fairness opinions;
- Potential conflicts of interest of Care Capital’s financial advisors; and
- The breakdown of the background process leading up to the acquisition.