subpoena from the Los Angeles regional office of the OIG requesting
information regarding Trinity's operations in 19 locations for the
period December 1, 1998 through February 12, 2008. This subpoena
relates to the ongoing investigation being conducted by the Commercial
Litigation Branch of the U.S. Department of Justice and the civil
division of the U.S. Attorney's Office in Arizona. Trinity is in the
process of complying with the subpoena. During 2006, the Company
recorded a loss of $5 million for possible fines, penalties and
damages related to the Trinity OIG investigation. As of December 31,
2007, the Company had incurred approximately $2 million in
professional fees and other costs in connection with the investigation
and related qui tam action and remediation activities. The Company
expects to incur additional costs, which may be substantial, until
this matter is resolved.
-- IRS Audit. The Internal Revenue Service is auditing our federal income
tax returns for the years ended December 31, 2005 and 2006, and our
employment tax returns for 2004, 2005 and 2006.
About Sunrise Senior Living
Sunrise Senior Living, a McLean, Va.-based company, employs
approximately 40,000 people. As of December 31, 2007, Sunrise operated 457
communities in the United States, Canada, Germany and the United Kingdom,
with a combined capacity for approximately 54,000 residents. At quarter
end, Sunrise also had 45 communities under construction in these countries
with a combined capacity for 5,800 additional residents. Sunrise offers a
full range of personalized senior living services, including independent
living, assisted living, care for individuals with Alzheimer's and other
forms of memory loss, as well as nursing, rehabilitative and hospice care.
Sunrise's senior living services are delivered by staff trai
|SOURCE Sunrise Senior Living, Inc.|
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