In re Medical Properties Trust Stockholder Litigation Demand Challenges Demand Pending Related Proceedings
The Board of Directors of Medical Properties Trust, Inc. informed shareholder William Bercury on July 13, 2026, that it has not made a determination on his litigation demand submitted on November 4, 2025. The board said it "has not made a determination on the demand or refused to investigate the allegations therein" but "has determined that it is in the Company’s best interests to defer further consideration of the demand pending further developments in three related proceedings" (Compl. ¶1). The three related proceedings include a securities class action and two derivative actions, all of which predate Bercury’s demand and are based on substantially similar allegations. Melinda A. Nicholson of Kahn Swick & Foti, LLC, serves as counsel for the demandant, William Bercury, who submitted the litigation demand on November 4, 2025.
The Board’s July 13, 2026, response references a prior response letter dated April 27, 2026, and a follow-up letter from Bercury’s counsel on May 1, 2026. The board continues to monitor those cases and will reassess the demand once they resolve, according to the filing. As stated in the response letter, "Board continues to monitor ongoing proceedings and assess impact on demand consideration" (Compl. ¶2). Prior to July 13, 2026, a derivative action in the District of Maryland was voluntarily dismissed, a development that may factor into the Board’s ongoing assessment. The Board’s response underscores that its deferral is not an outright refusal or abandonment of the demand, distinguishing its approach from other cases where such actions were taken.
Board’s Deferral of Demand Consideration Pending Related Proceedings
The Board of Directors of Medical Properties Trust, Inc. informed shareholder William Bercury that it has not made a determination on his litigation demand or refused to investigate the allegations. The letter states, in its opening paragraph, "the Board has not made a determination on the demand or refused to investigate the allegations therein" (Compl. ¶1). On November 4, 2025, a litigation demand was submitted on behalf of William Bercury by his counsel, Melinda A. Nicholson of Kahn Swick & Foti, LLC.
The letter notes that the Board has determined it is in the company’s best interests to defer further consideration of the demand pending developments in three related proceedings: a securities class action and two derivative actions. The letter states, "the Board has determined that it is in the Company’s best interests to defer further consideration of the demand pending further developments in three related proceedings" (Compl. ¶1). These proceedings predate the November 4, 2025 demand and involve substantially similar allegations. The Board’s prior response letter to the demand, dated April 27, 2026, and the follow-up letter from Bercury’s counsel on May 1, 2026, are referenced in the timeline of communications leading to the July 13, 2026, response. The Board’s decision to defer consideration is further informed by the voluntary dismissal of a derivative action in the District of Maryland, which occurred prior to the July 13 response.
The letter distinguishes the Board’s response from cases where boards outright refused demands or abandoned investigations, noting in a footnote that "The Board here has not refused the demand or abandoned an investigation, rendering these cases inapposite" (Compl. footnote 1). The Board continues to monitor the ongoing proceedings and assess their impact on the demand’s consideration, according to the filing. This includes the voluntary dismissal of a derivative action in the District of Maryland prior to July 13, 2026, which the Board is tracking as part of its ongoing evaluation.
Board’s Monitoring and Assessment of Ongoing Proceedings
The Board of Directors of Medical Properties Trust, Inc. stated in its July 13, 2026, response that it "continues to monitor the ongoing related proceedings and assess their impact on the consideration of the demand" (Compl. ¶2). The three related proceedings—a securities class action and two derivative actions—predate William Bercury’s November 4, 2025, litigation demand and are based on substantially similar allegations (Compl. ¶1). The Board’s decision to defer consideration of the demand follows a series of communications, including a prior response letter dated April 27, 2026, and a follow-up letter from Bercury’s counsel on May 1, 2026.
The Board’s ongoing assessment includes developments such as the voluntary dismissal of a derivative action in the District of Maryland, which occurred prior to the July 13, 2026, response. This dismissal is one of several factors the Board is considering as it evaluates the demand’s merits and the potential impact of related litigation on the company. The Board’s position is that deferring consideration of the demand is in the company’s best interests until further developments arise in these related cases. The Board’s July 13, 2026, letter emphasizes that its approach is distinct from cases where boards have refused demands or abandoned investigations, as noted in the filing: "The Board here has not refused the demand or abandoned an investigation, rendering these cases inapposite" (Compl. footnote 1).
Melinda A. Nicholson of Kahn Swick & Foti, LLC, represents William Bercury in this matter, while Nate Cullerton of Wachtell, Lipton, Rosen & Katz serves as counsel for the Board of Directors.
Distinction from Cases of Outright Demand Refusal or Abandoned Investigations
The Board of Directors of Medical Properties Trust, Inc. (MPT) emphasized in its July 13, 2026, response that its decision to defer consideration of William Bercury’s litigation demand differs materially from cases where boards have either refused demands outright or abandoned investigations. The letter states, "The Board here has not refused the demand or abandoned an investigation, rendering these cases inapposite" (Compl. footnote 1). The Board’s approach follows a litigation demand submitted on November 4, 2025, by shareholder William Bercury, represented by Melinda A. Nicholson of Kahn Swick & Foti, LLC. Subsequent communications include a prior response letter from the Board dated April 27, 2026, and a follow-up letter from Bercury’s counsel on May 1, 2026.
The Board’s letter notes that the Board continues to monitor the ongoing proceedings, which include a securities class action and two derivative actions, and assess their impact on the demand’s consideration. The voluntary dismissal of a derivative action in the District of Maryland prior to July 13, 2026, is among the developments being tracked by the Board. The Board’s deferral of further consideration is framed as a determination made "in the Company’s best interests" (Compl. ¶1), pending resolution of the related proceedings that predate Bercury’s demand and involve substantially similar allegations.
Parties and Their Roles in the Demand Response
William Bercury, a shareholder of Medical Properties Trust, Inc. (MPT), submitted the litigation demand at issue on November 4, 2025. Melinda A. Nicholson of Kahn Swick & Foti, LLC serves as counsel for Bercury, representing him in this matter. The demand prompted the Board’s response, which included a prior response letter dated April 27, 2026, and the July 13, 2026, letter deferring further consideration.
Medical Properties Trust, Inc. (MPT) is the named recipient of the demand. The company’s Board of Directors issued the July 13, 2026, response letter, deferring further consideration of the demand pending developments in three related proceedings: a securities class action and two derivative actions. These proceedings predate Bercury’s demand and involve substantially similar allegations (Compl. ¶1). The Board’s decision to defer consideration references a follow-up letter from Bercury’s counsel on May 1, 2026. The Board’s position is that deferring consideration of the demand is in the company’s best interests until further developments arise in these related cases.
Nate Cullerton of Wachtell, Lipton, Rosen & Katz serves as counsel for the Board, signing the July 13, 2026, response letter on its behalf. The letter states that "the Board has not made a determination on the demand or refused to investigate the allegations therein" (Compl. ¶1). The Board’s response underscores that it "has determined that it is in the Company’s best interests to defer further consideration of the demand pending further developments in three related proceedings" (Compl. ¶1). The Board continues to monitor these proceedings, including the voluntary dismissal of a derivative action in the District of Maryland prior to July 13, 2026.
Timeline of Key Events Related to the Demand
The Board’s July 13, 2026, response references a series of filings and procedural steps that began with William Bercury’s litigation demand on November 4, 2025. Melinda A. Nicholson of Kahn Swick & Foti, LLC, submitted the demand on Bercury’s behalf. The Board’s letter acknowledges a prior response to the demand dated April 27, 2026, and a follow-up letter sent by Bercury’s counsel on May 1, 2026, which are part of the documented timeline of communications.
The Board’s letter states that, along with a securities class action and another derivative suit, these are the "three related proceedings" that predate Bercury’s demand and share "substantially similar allegations" (Compl. ¶1). Prior to July 13, 2026, a derivative action in the District of Maryland was voluntarily dismissed, a development that may influence the Board’s ongoing assessment of the demand. The Board’s position is that deferring consideration of the demand is in the company’s best interests until further developments arise in these related cases.
The Board’s July 13, 2026, response defers further consideration of the demand pending developments in these related proceedings, as stated in the letter: "the Board has determined that it is in the Company’s best interests to defer further consideration of the demand pending further developments in three related proceedings" (Compl. ¶1). The Board continues to monitor these cases, including the impact of the voluntary dismissal in the District of Maryland, and will reassess the demand as developments unfold.
Relief Sought and Procedural Posture
The Board of Directors of Medical Properties Trust, Inc. (MPT) has taken no affirmative action on the litigation demand submitted by shareholder William Bercury on November 4, 2025. In its July 13, 2026, response letter, the Board states it "has not made a determination on the demand or refused to investigate the allegations therein" (Compl. ¶1). Instead, the Board has elected to defer further consideration of the demand pending developments in three related proceedings: a securities class action and two derivative actions, all of which predate Bercury’s demand and are based on "substantially similar allegations" (Compl. ¶1). The Board’s decision references a prior response letter dated April 27, 2026, and a follow-up letter from Bercury’s counsel on May 1, 2026.
The letter serves solely as a procedural update, clarifying the Board’s current stance on the demand. The Board’s position contrasts with cases where boards have either refused demands outright or abandoned investigations, as the letter notes that such precedents are "inapposite" here (Compl. footnote 1). The Board’s deferral is framed as a determination made "in the Company’s best interests" (Compl. ¶1). The Board continues to monitor ongoing proceedings, including the voluntary dismissal of a derivative action in the District of Maryland prior to July 13, 2026, and will reassess the demand as developments in the related cases unfold.
The allegations described here are taken from the filing and remain unproven; no responsive pleading is reflected in the source document.
David Brunk is a civil litigation attorney. He can be reached at david@newmanbrunk.com.
From the Complaint Public Court Record
EXHIBIT G Case 1:26-cv-06976-UA Document 1-7 Filed 08/14/26 Page 1 of 3
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