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SRG.US
id: 1285
Seritage Growth Properties (SRG) Poor Financial Controls Case
S.D. New York
Court1:24-cv-05007
Case number07/07/2022
Class period Start05/10/2024
Class period End08/30/2024
Lead Plaintiff motion deadline- $SRG stockholder filed a claim vs. Seritage Growth for issues with its financial controls.
- After disappointing financial results, $SRG fell by over 27% on May 13, 2024.
- Seritage investors can join this case to be notified about potential recovery.
Case Details:
On August 14, 2023, Seritage announced a "material weakness" in its financial reporting controls.
There was a problem in recognizing early signs of potential losses in real estate investments, especially in development projects.
On this news, $SRG fell 9.6% on August 15, 2023.
Then, on May 10, 2024, Seritage announced its financial results for the first quarter of 2024. Seritage adjusted asset values, reducing their portfolio worth by at least $325M.
Due to this news, $SRG fell 27.3% on May 13, 2024.
Based on these events, a $SRG stockholder filed a claim against Seritage and its leaders, accusing them of the following:
- The company didn't have effective controls to identify potential losses in real estate investments.
- As a result, it overstated the value and projected earnings from certain real estate assets.
Considering all the representations, investors have reasons to suspect that Seritage lacked effective controls, resulting in overestimated values and earnings from certain real estate assets.
Case Status
Initial Complaint
Alleged Offence
Mismanagement,
Misleading Statements,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
05/13/2024
Filing date
07/01/2024
Lead Plaintiff Deadline
08/30/2024
Judge
Vernon S. Broderick