CLNY INVESTOR ALERT: Kirby McInerney LLP Announces That a Class Action Lawsuit Has Been Filed Against Colony Capital, Inc. and Encourages Investors to Contact the Firm Before July 27
Investors have until July 27, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
NEW YORK, May 29, 2020 (GLOBE NEWSWIRE) -- The law firm of Kirby McInerney LLP announces that it has filed a class action lawsuit in the U.S. District Court for the Central District of California on behalf of those who acquired Colony Capital, Inc. (“Colony” or the “Company”) (NYSE: CLNY) securities during the period from August 9, 2019 through May 7, 2020 (the “Class Period”). Investors have until July 27, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that the Company failed to disclose that: (i) Colony’s sale of its industrial real estate portfolio and the bifurcation of Colony Credit Real Estate’s portfolio were foreseeably likely to negatively impact Colony’s financial and operating results; and (ii) certain of Colony’s remaining portfolio companies carried unsustainable levels of debt secured by hotels and healthcare-related properties and were thus at a significant risk of default.
On November 8, 2019, Colony reported its third quarter of 2019 financial results, including “reductions of goodwill, real estate and provision for loan losses totaling $540.3 million” in large part due to “the pending sale of the Company’s industrial investment management business and related real estate portfolio, and the decrease in management fees from Colony Credit Real Estate, Inc. resulting from impairments related to its portfolio bifurcation.” On this news, Colony’s stock price fell $0.48 per share, or 8.7%, to close at $5.00 per share on November 8, 2019.
Then, on May 8, 2020, Colony announced its first quarter of 2020 financial results, including that its portfolio companies had defaulted on $3.2 billion of debt secured by hotels and healthcare-related properties and that Colony had received a notice of acceleration covering $780 million of the defaulted debt. On this news, Colony’s stock price fell $0.08 per share, or 3.8%, to close at $2.02 per share on May 8, 2020.
If you acquired Colony securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at [email protected], or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, and whistleblower litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: www.kmllp.com.
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Contacts
Kirby McInerney LLP
Thomas W. Elrod, Esq.
(212) 371-6600
[email protected]
www.kmllp.com
