Government dismisses whistleblower claims made by former Assisted Living Concepts CEO Laurie Bebo

Share this content:

The Department of Labor has dismissed a whistleblower lawsuit filed by Laurie Bebo against the company she used to lead, Assisted Living Concepts, according to ALC's recently filed quarterly results.

Bebo's complaint relates to a lawsuit Ventas Realty filed against ALC in April 2012. Bebo says that ALC delayed releasing an earnings report to avoid disclosing the lawsuit, which claimed ALC breached lease terms with Ventas. The suit also brought up regulators' findings of substandard care in some facilities. When she suggested that ALC disclose why it had delayed the earnings report, she was terminated, Bebo said in her whistleblower suit.

The Occupational Safety and Health Administration, which is part of the labor department, dismissed Bebo's suit last month, according to ALC's May 8 filing with the Securities and Exchange Commission. Bebo has 30 days from the date of dismissal to file for a hearing before an administrative law judge.

Other actions related to Bebo's dismissal, including an arbitration proceeding, are ongoing. ALC will continue to “vigorously defend” itself against Bebo's claims, and does not anticipate the legal actions will have a “material adverse effect” on financial results. The company posted an $8.2 million loss for the first quarter of 2013.

In February, investment firm TPG acquired ALC for $287 million.