LOS ANGELES–(BUSINESS WIRE)–$CLNY #classaction—The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Colony Capital, Inc. (“Colony” or the “Company”) (NYSE: CLNY) securities between August 9, 2019 and May 07, 2020, inclusive (the “Class Period”). Colony investors have until July 27, 2020 to file a lead plaintiff motion.
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On November 8, 2019, the Company revealed its financial results for the third quarter of 2019. Among other results, Colony reported a GAAP net loss of $555 million, or $1.15 per share, which “notably included reductions of goodwill, real estate and provision for loan losses totaling $540.3 million . . . of which $387.0 million was attributable to the reduction of goodwill primarily as a result of 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, the Company’s share price fell $0.48 per share, or over 8%, to close at $5.00 per share on November 8, 2019.
Then, on May 8, 2020, the Company issued a press release revealing its financial and operating results for the first quarter of 2020. In the press release, the Company reported 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, the Company’s share price fell $0.08 per share, or over 3%, to close at $2.02 per share on May 8, 2020, thereby injuring investors.
The complaint alleges that throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose: (1) that Colony’s sale of its industrial real estate portfolio and the bifurcation of Colony Credit Real Estates portfolio were foreseeably likely to negatively impact Colony’s financial and operating results; (2) that certain of Colony’s remaining portfolio companies carried unsustainable levels of debt secured by hotels and healthcare-related properties and were thus at significant risk of default; and (3) as a result, the Company’s public statements were materially false and misleading at all relevant times.
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If you purchased Colony securities during the Class Period, you may move the Court no later than July 27, 2020 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased Colony securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to firstname.lastname@example.org, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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