COLONY CAPITAL DEADLINE ALERT: Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses Exceeding $100,000 In Colony Capital, Inc. To Contact The Firm
New York, New York--(Newsfile Corp. - June 1, 2020) - Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Colony Capital, Inc. ("Colony Capital" or the "Company") (NYSE: CLNY) of the July 27, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
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If you invested in Colony Capital stock or options between August 9, 2019 and May 7, 2020 and would like to discuss your legal rights, click here: www.faruqilaw.com/CLNY. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org.
FARUQI & FARUQI, LLP
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Attn: Richard Gonnello, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
The lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of all those who purchased Colony Capital securities between August 9, 2019 and May 7, 2020 (the "Class Period"). The case, Alex Swartzendruber v. Colony Capital, Inc. et al., No. 2:20-cv-04673 was filed on May 26, 2020, and has been assigned to Judge Robert Gary Klausner.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) 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 (2) 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 announced its financial results for the third quarter of 2019. Among other results, the Company 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 stock price fell from $5.48 per share on November 7, 2019 to $5.00 per share on November 8, 2019: a $0.48 or 8.76% drop.
Then, on May 8, 2020, Colony issued a press release announcing its financial and operating results for the first quarter of 2020. In the press release, Colony 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 stock price fell from $2.10 per share on May 7, 2020 to $2.02 per share on May 8, 2020: a $0.08 or 2.88% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Colony Capital's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
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