Despite HCP, Inc. (NYSE:HCP) agreeing to pay approximately $102 million judgment to Ventas, Inc. (NYSE:VTR) for compensatory damages, the battle between the two Health Care REIT powerhouses rages on.
In September 2009, a jury verdict awarded Ventas with the judgment after they filed a suit accusing HCP of tortious interference with business expectations concerning Ventas’ acquisition of Sunrise Senior Living REIT in April 2007. Ventas originally sought approximately $300 million for both compensatory and punitive damages, but the court dismissed Ventas’ claims for punitive damages.
The Wall Street Journal is reporting that Ventas plans try obtain punitive damages again, which could run as high as $300 million, according to an estimate by Richard Anderson, an analyst at BMO Capital Markets.
According to the WSJ:
Even if Ventas succeeds in collecting punitive damages, the financial pain won’t be great for Long Beach, Calif.-based HCP, which has a market capitalization of $15 billion. But some of the testimony at the trial in 2009 was embarrassing to the company.
According to a transcript of the trial, Mr. Flaherty acknowledged at one point he sent an email stating: “Show me what you got, yoe mama,” referring to Ms. Cafaro. He also testified that he played “Brilliant Disguise” by Bruce Springsteen as the hold music on a conference call to announce an unsolicited takeover offer.
Written by John Yedinak