Assisted Living Concepts of Portland and its insurance carriers have agreed to pay $30 million to settle securities fraud lawsuits filed by investors last year, the company and investors’ lawyers said Tuesday.

The lawsuit arose after the company restated earnings for 1996, 1997 and the first three quarters of 1998. The company was allegedly concealing millions of dollars in losses through creative accounting, and the restatement killed a planned $487 million purchase of the company by rival American Retirement Corp.

ALC is contributing approximately $10 million to the settlement, and its liability insurance carriers are contributing approximately $19 million, and certain other defendants contributing the remainder. The settlement is one of the largest securities settlements ever in Oregon.

ALC will take the $10 million charge in the third quarter, resulting in a loss of approximately 52 cents a share. At close of markets Wednesday, shares of ALC were trading at $22/share, up 6 cents for the day, and $2 above its 52-week low.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.