Pomerantz legislation agency declares class motion lawsuit towards Colony Credit score Actual Property, Inc. and sure officers – CLNC – PRNewswire
NEW YORK, September 10, 2020 / PRNewswire / – Pomerantz LLP announces that a class action lawsuit has been filed against Colony Credit Real Estate, Inc. ("Colony Credit" or the "Company") (NYSE: CLNC) and some of its officers. The class action filed in United States District Court for the Central District of Californiaand registered under 20-cv-08305, is on behalf of a class consisting of all persons other than Defendants who have acquired or otherwise acquired Colony Credit's common stock in accordance with the company's false and / or misleading registration statement and prospectus (collectively the "Registration Statement") issued in connection with the combination of Colony NorthStar, Inc. ("Colony NorthStar") and NorthStar Real Estate Income Trust, Inc. ("NorthStar I") and NorthStar Real Estate Income II, Inc. ( "NorthStar II") on or above 1st February 2018 (the "Merger") seeking remedial action under Sections 11 and 15 of the Securities Act of 1933 (the "Securities Act").
If you are a shareholder who purchased Colony Credit securities during the class period, you have up November 9, 2020to ask the court to appoint you as the lead plaintiff for the class. A copy of the complaint is available at www.pomerantzlaw.com. To discuss this action, please contact Robert S. Willoughby at the (Email protected) or 888.476.6529 (or 888.4-POMLAW), toll free, ext. 7980. Those who inquire by email are asked to provide their postal address, telephone number, and the number of shares purchased.
(Click here for information on how to participate in the class action.)
Colony Credit is a commercial real estate ("CRE") investment real estate investment trust ("REIT") that purports to manage a diversified portfolio of CRE senior mortgage loans, mezzanine loans, preferred equity, debt and net rentals in the United States
The company's common stock was registered with the SEC in connection with the merger. Following the Combination, Colony Credit's common stock was listed on the New York Stock Exchange ("NYSE") without an initial public offering: NorthStar I shareholders received 0.3532 Class A shares of the Company for each common share of NorthStar I; NorthStar II shareholders received 0.3511 Class A common shares of the company for each share of NorthStar II common stock they owned.
The registration statement was materially inaccurate and misleading and was omitted to indicate: (i) that the credit quality of certain Company assets had deteriorated prior to the merger and continued to deteriorate at the time of the merger; (ii) that certain loans from the company, including four loans of approximate $ 261 million in connection with a new York Hotels were severely compromised, there was insufficient collateral to secure the loans, and the loans were unlikely to be repaid; (iii) as a result, the valuation attributed to certain of the Company's assets was overvalued; (iv) that some of the assets contributed as part of the merger were of substantially less value than reported in the Company's financial statements and the registration statement; (v) that as a result the company's financial condition, including its book value, has been materially overstated; and (vi) as a result of the foregoing, the positive statements in the registration statement regarding the business, operations and prospects of the company were materially misleading and / or were not based on reasonable grounds.
On August 8, 2019Colony Credit issued a press release reporting on its financial results for the second quarter of 2019 in which a $ 119 million Provision for credit losses.
In the news, the company's share price fell $ 2.00 per share or more than 12% close over two consecutive trading sessions $ 14.05 per share on August 12, 2019.
On November 8, 2019The company announced a portfolio split of certain assets and announced a $ 127 million Provision for credit losses.
In the news, the company's share price fell $ 2.50 per share or nearly 18% to close $ 11.75 per share on November 8, 2019.
At the time of filing this complaint, Colony Credit's shares were last trading $ 5.40 per share, a decrease of more than 78% over the $ 25 Book value per share at the time of the merger.
The Pomerantz company with offices in new York, Chicago, los Angeles, and Paris is recognized as a leader in corporate, securities and antitrust litigation. Established by the late Abraham L. PomerantzPomerantz Company, known as the dean of class action, pioneered class action lawsuits. Today, more than 80 years later, Pomerantz continues its tradition of fighting for the rights of victims of securities fraud, fiduciary violations and corporate misconduct. The company has received numerous millions of dollars in damages on behalf of class members. See www.pomerantzlaw.com.
Robert S. Willoughby
888-476-6529 ext. 7980
SOURCE Pomerantz LLP