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McLean's Sunrise Senior Living settles with SEC over investigation of finances

Saturday, July 24, 2010; A10

REGULATORS

Sunrise settles SEC investigation

Sunrise Senior Living said Friday that it has agreed to settle with the Securities and Exchange Commission over an investigation into the McLean company's financial reporting from 2003 to 2005.

The SEC is not fining the residential living facilities operator but is entering a judgment that prohibits the company from violating certain financial reporting acts. Sunrise neither admits nor denies the SEC's allegations.

Two former company executives, Larry E. Hulse and Kenneth J. Abod, agreed to settle with the SEC without admitting or denying the allegations against them. Sunrise does not expect the SEC to take action against any other directors, officers or employees.

Shares of Sunrise rose 10 cents, to 3.8 percent, to close at $2.75.

-- Associated Press

STOCKS

Capital One slides on revenue concerns

Shares of Capital One Financial fell Friday after the McLean-based credit card issuer warned that revenue could decline in the next few quarters.

The bleak outlook came despite a quarterly profit that easily beat Wall Street expectations. But the strong performance came because the company had to set aside far less money for loan losses than it did a year ago. Charge-offs across the industry remain near record levels, and credit card companies are also adjusting to new regulations that limit their ability to charge fees and raise interest rates.

Capital One stock closed at $40.84, down 2.9 percent.

-- Associated Press

HEALTH CARE

Analyst downgrades Omega Healthcare

Omega Healthcare Investors' stock slipped Friday after an analyst lowered his rating on the firm, but by day's end, shares had recovered to post a 0.9 percent gain.

Jefferies analyst Omotayo Okusanya said second-quarter results are unlikely to reveal any new catalysts that could drive growth in the health-care real estate investment trust, which focuses on nursing facilities and other specialty hospitals. The Hunt Valley, Md.-based company is scheduled to report its quarterly results Monday.

Okusanya downgraded the firm's stock to "hold" from "buy," saying he was concerned about the company's skilled nursing home exposure because of the outlook for Medicaid over the next year. "Most states remain financially strapped, and we worry these states will cut Medicaid in order to balance their budgets," the analyst wrote in a note to clients.

-- Associated Press

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