Robbins LLP is Investigating Allegations that Seritage Growth Properties (SRG) Misled Investors Regarding its Business Prospects
Robbins LLP informs investors that a shareholder filed a class action on behalf of persons and entities that purchased or otherwise acquired Seritage Growth Properties (NYSE: SRG) securities between July 7, 2022 and May 10, 2024.
The Allegations
Plaintiff alleges that on August 14, 2023, after the market closed, Seritage revealed that there was a “material weakness” in the Company’s internal control over financial reporting “due to a deficiency in the design of our control over the identification of impairment indicators for investments in real estate and documentation of evidence of review.” Moreover, the deficiency related “to the failure to identify potential indicators of impairment related to development projects in a timely manner.” On this news, Seritage’s stock price fell $0.86, or 9.67%, to close at $8.03 per share on August 15, 2023,
The complaint continues that on May 10, 2024, Seritage released its first quarter 2024 financial results, revealing it was “adjusting [its] pricing projections for some of [its] assets.” As a result, the gross value of the Company’s portfolio of assets was reduced by at least $325 million. On this news, Seritage’s stock price fell $2.54, or 27.3%, to close at $6.78 per share on May 13, 2024
According to the complaint, during the class period, defendants failed to disclose to investors that (1) the Company lacked effective internal controls regarding the identification and review of impairment indicators for investments in real estate, and (2) as a result, the Company had overstated the value and projected gross proceeds of certain real estate assets.
What Now: You may be eligible to participate in the class action against Seritage Growth Properties. Shareholders who want to serve as lead plaintiff for the class must file their motions with the court by August 30, 2024. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.