Glancy Prongay & Murray LLP ("GPM") has announced that it has filed a class action lawsuit on behalf of investors who purchased or acquired Medical Properties Trust, Inc. (MPT) securities between March 1, 2022, and February 22, 2023. The lawsuit, captioned Sward v. Medical Properties Trust, Inc., et al., Case No. 23-cv-03070, alleges that MPT violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 during the Class Period.

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Failure to Disclose Material Adverse Facts

The complaint alleges that MPT and its executives made materially false and/or misleading statements and failed to disclose material adverse facts about the Company's business, operations, and prospects throughout the Class Period. Specifically, the defendants failed to disclose that Prospect, a client leasing properties from MPT, was facing significant pressures affecting the profitability of its Pennsylvania properties. As a result, there was a significant risk that Prospect would be unable to meet its rental obligations owed to MPT. The complaint also alleges that MPT was reasonably likely to record an impairment charge to the real estate value of the Pennsylvania properties due to the elongated timing of the Pennsylvania recovery.

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Announcement of Financial Results Triggers Stock Price Drop

On February 23, 2023, MPT issued a press release announcing its fourth quarter and full-year 2022 financial results. The announcement included the disclosure of an impairment of about $171 million on four properties leased to Prospect, as well as a write-off of about $112 million in unbilled rent for the same client. The news triggered a significant drop in MPT's stock price, which fell $0.80, or 8.7%, to close at $11.14 per share on February 23, 2023, injuring investors.

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Investors Have 60 Days to Move the Court

Investors who purchased or acquired MPT securities between March 1, 2022, and February 22, 2023, inclusive, have been notified that they have 60 days from the announcement to move the Court to serve as lead plaintiff in the class action lawsuit.

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Members of LevelFields received the alert of this event on April 12, 6:45 PM ET

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