Item 8.01 Other Events

On September 13, 2012, a lawsuit was filed derivatively by an alleged stockholder of Assisted Living Concepts, Inc. (the "Company") against certain of the Company's current and former executive officers and directors and the Company, as nominal defendant. The complaint, which has not yet been served on the Company, is captioned George Passaro, Individually and Derivatively on Behalf of Assisted Living Concepts, Inc. v. Laurie A. Bebo, et al., Case No. 12CV010106, and was filed in the Milwaukee County Circuit Court for the State of Wisconsin. The complaint alleges that the individual defendants breached their fiduciary duties to exercise good faith to ensure that the Company was operated in a diligent, honest and prudent manner, and to exercise good faith in taking appropriate action to prevent and correct certain issues relating to the Company's legal and regulatory compliance. The lawsuit seeks damages and other relief in favor of the Company and the plaintiff's costs and disbursements with respect to the litigation.

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