This action stems from a proposed transaction announced on January 6, 2025, pursuant to which Regional Health Properties, Inc. (“Regional” or the “Company”) would enter into an all-stock merger transaction with SunLink Health Systems, Inc. This lawsuit was filed against Regional Health Properties and three of its Directors.

According to the Company’s SEC filings, Regional Health is a self-managed real estate investment company that invests primarily in real estate purposed for long-term care and senior housing.

The Complaint alleges that in soliciting shareholder approval for the Proposed Transaction, on or about June 24 and 25, 2025, Defendants caused the issuance of the Proxy Statement, which purports to contain a summary/overview of the Proposed Transaction, but omits certain critical information, rendering portions of the Proxy Statement materially incomplete and/or misleading. As a result, the Complaint further alleges that Regional’s shareholders lack material information necessary to allow them to make an informed decision concerning whether to vote in favor of the Proposed Transaction.