Brookdale Senior Living Inc. (BKD) Accused of Misleading Shareholders
In February 2017, Brookdale assured investors in its 2016 annual report that the Company “is committed to providing senior living solutions primarily within properties that are designed, purpose-built and operated to provide the highest quality service, care and living accommodations for residents.” Additionally, Brookdale affirmed its operating efficiency due to its community staffing and training. These assurances were maintained in its 2017, 2018, and 2019 annual reports. Despite its repeated assurances, on April 30, 2020, Nashville Business Journal reported that a proposed class action lawsuit had been filed against Brookdale for “chronically insufficient staffing” at its facilities in an effort to meet financial benchmarks since at least April 24, 2016. The plaintiffs allege they “have not received the care and services they paid for” and ask that Brookdale “stop the unlawful and fraudulent practices.” On this news, Brookdale’s share price fell over 15% over two trading sessions to close at $3.12 per share.