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SRG.US
id: 1285

Seritage Growth Properties (SRG) Poor Financial Controls Case

S.D. New York
Court
1:24-cv-05007
Case number
07/07/2022
Class period Start
05/10/2024
Class period End
08/30/2024
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
Collecting participants…

Seritage Growth Properties

Prior to the adoption of the Company's Plan of Sale, Seritage was principally engaged in the ownership, development, redevelopment, management, sale and leasing of diversified retail and mixed-use ...

    Ticker
    SRG.US
    ISIN
    US81752R1005
    CIK
    0001628063
    Sector
    Real Estate
    Industry
    Real Estate Services
    Country
    USA
    Address
    500 Fifth Avenue, New York, NY, United States, 10110-1502