Brookdale Senior Living Execs Sued Over Alleged Misconduct (1)

Executives at Brookdale Senior Living Inc., one of the largest operators of senior living communities in the U.S. by total capacity, were hit with a derivative action in Tennessee federal court by a shareholder who says the officials committed misconduct in the course of trying to hit strict financial targets.

Brian Davis, a current shareholder of Brookdale common stock, says the company’s CEO, CFO, and others allowed multiple violations of Brookdale’s corporate governance policies to go forward. The individual defendants are accused of causing the company to intentionally underestimate data inputs used for an algorithm used for staffing.

The complaint ...