The ongoing litigious battle between healthcare real estate investment trusts Ventas, Inc., and HCP, Inc., came to an end Wednesday when the companies announced HCP had agreed to pay a $125 million settlement.
The settlement is in addition to the $102.8 million in compensatory damages awarded to Ventas in 2009. As was reported last month, Ventas was seeking an estimated $300 million in punitive damages over HCP’s actions during the 2007 acquisition of the Sunrise Senior Living real estate investment trust, in which HCP reportedly drove up the purchase price of the Sunrise REIT for Ventas.
“This settlement concludes our litigation against HCP with a favorable result that will benefit our shareholders immediately,” Ventas CEO Debra A. Cafaro said in a statement. “We are pleased with the outcome and intend to put the proceeds to good use on their behalf.”
As part of the settlement, both parties have agreed to dismissals of their cases, appeals and petitions, and all aspects of the litigation will be terminated. Ventas expected to receive the $125 million in settlement proceeds Wednesday.
“We are pleased to reach a final resolution of this matter,” HCP CEO Jay Flaherty said in a separate statement. “This settlement allows us to put the lawsuit behind us and concentrate all of our efforts on growing our business.”