Colony NorthStar, Inc. (CLNS) Accused of Including False Statements in its SEC Filings

According to the complaint, Colony Northstar, Inc. (CLNS) officials attested to the accuracy of the financial reporting and the disclosure of all fraud in the company's public filings. However, Colony's financial results were not as accurate as the company represented to investors because Colony's Healthcare and Investment Management segments were performing worse than reported. On March 1, 2018, Colony announced a goodwill impairment of $375 million to reflect lower value in its Investment Management business. During the company's conference call that same day, Colony's President and Chief Executive Officer stated, "Our earnings performance has not lived up to expectations, emanating from more challenging industry conditions in healthcare, real estate as well as our retail broker dealer distribution business[.]…" On this news, Colony's stock fell over 22% to close at $6.00 per share on March 1, 2018, and has since continued to fall, closing at $5.58 on April 12, 2018.

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