Three Suits Filed Over Care Capital Properties Merger

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Care Capital Properties, Inc. and the company’s board of directors are facing allegations that they misled stockholders concerning a proposed merger between Care Capital and Sabra Health Care REIT, Inc. In two proposed class action lawsuits against them, the defendants are accused of undervaluing Care Capital. The plaintiffs demand that the defendants disclose omitted information regarding the company’s financial projections and the details of the valuation analyses performed by its financial advisors.

A third lawsuit adds Care Capital Properties, LP, Sabra Health Care REIT, Inc. and three affiliates to the list of defendants. It also claims that the defendants failed to consider alternate options by including a “no solicitation” provision in the merger agreement. In addition, the suit argues that the defendants neglected to disclose any information that would reveal conflicts of interest of their financial advisors, including past relationships with Sabra and fees they would be paid for their services.