HCP (NYSE:HCP) said it will pay Ventas (NYSE:VTR) $125 million to settle any outstanding litigation between the two companies.
Earlier this year, HCP agreed to pay Ventas $102.8 million for compensatory damages after a jury found it was guilty for interfering with the acquisition of Sunrise Senior Living REIT in 2007.
“We are pleased to reach a final resolution of this matter,” said Jay Flaherty, Chairman and CEO of HCP. “This settlement allows us to put the lawsuit behind us and concentrate all of our efforts on growing our business.”
As a result of the announcement, HCP updated its full year 2011 guidance to reflect a $0.31 per share charge and said it expects fund from operations per share to range between $2.15 and $2.21 and net income per share to range between $1.25 and $1.31.
In total, HCP has paid $228 million to Ventas.
“This settlement concludes our litigation against HCP with a favorable result that will benefit our shareholders immediately,” said Ventas Chairman and Chief Executive Officer Debra A. Cafaro. “We are pleased with the outcome and intend to put the proceeds to good use on their behalf.”
Written by John Yedinak