Omega Healthcare Accused of Concealing Weakening Financial and Operating Results
According to a recently filed complaint on behalf of Omega Healthcare shareholders, the company’s investments were experiencing poor financial and operating results such that they were unable to pay their rents. On May 3, 2017, Omega affirmed its 2017 annual Adjusted FFO (funds from operations) available to common stockholders to be between $3.40 and $3.44 per diluted share, which it revised on July 26, 2017, to be between $3.42 and $3.44 per diluted share. Then, on October 30, 2017, after the market closed, Omega lowered its 2017 guidance, noting the liquidity concern that many of the company’s top operators were facing was severely impacting their ability to pay rent in a timely manner. On this news, Omega’s stock fell $2.11 per share, or 6.8%, to close at $28.86 per share on October 31, 2017, and the stock continues to decline.