ARV Adds Fraud Claims to Lazard Lawsuit

ARV Assisted Living Inc. amended a lawsuit against a Lazard Freres & Co. affiliate to include fraud claims, as ARV moves to keep Lazard from buying a competitor in the booming nursing-home market. The Orange County Superior Court on Thursday granted ARV’s motion to include the fraud charges as part of a suit that seeks to stop Lazard Freres Real Estate Investors from buying ARV competitor Atria Communities Inc. Costa Mesa-based ARV, which is about 48% owned by Lazard Freres Real Estate, said it will submit “substantial evidence” to support its claim during a trial scheduled to begin on Monday. Prospects for growth in care for the elderly, especially those who need only limited medical aid, are drawing investment banks such as Lazard and Goldman, Sachs & Co. and hotel chains such as Marriott Corp. The assisted-living market could rise to $22 billion in 2001 from $13 billion now, analysts estimate. Lazard Freres Real Estate spokesman Owen Blicksilver said ARV’s accusations of fraud were unfounded. “This is America and you can sue anybody for anything. But it doesn’t mean it has any merit,” he said. ARV in May filed a suit to block the $750-million Atria purchase, claiming that Lazard violated agreements giving ARV the first right to make a bid.