A United States District Court judge has approved a proposed $12 million settlement resolving a class-action lawsuit against Assisted Living Concepts and its former chief executive officer Laurie Bebo, the Milwaukee Journal Sentinel reports.
Assisted Living Concepts and Bebo agreed to pay the $12 million cash settlement in early September.
Judge J.P. Stadtmueller approved the settlement in mid-December and also approved the allocation of $3 million of the settlement to the plaintiffs’ attorneys. The lawsuit alleged that Assisted Living Concept’s executives misled shareholders regarding the company’s financial status and regulatory compliance.
Shareholders who bought ALC stock between March 4 and August 6, 2012 are included in the settlement. Assisted Living Concepts traded under the symbol ALC on the New York Stock Exchange before being acquired by private equity firm TPG in a transaction that closed on July 2013 and subsequently de-listed.
ALC investors had filed the class-action lawsuit in August 2012 based on claims that the company issued false statements regarding its financials and compliance with various state regulatory departments.
Written by Alyssa Gerace