Sun Communities ($SUI) Investor Settlement
Sun Communities has reached a tentative settlement to resolve investor claims that it misled investors about governance practices, insider loans, board independence, and related financial reporting issues.
Outline:
On February 28, 2019, Sun Communities was allegedly involved in an undisclosed insider mortgage to CEO Gary A. Shiffman from a trust tied to a board member’s family. For years afterward, the company continued presenting itself as an industry leader with strong governance and a focus on growth and shareholder returns. On September 24, 2024, Blue Orca Capital reported undisclosed insider loans and other conflicts involving Shiffman and board members. $SUI fell 1.16% on the news, and the matter has now moved to a tentative settlement.
Timeline:
February 28, 2019: Gary A. Shiffman allegedly received a $3.95 million mortgage from a trust associated with board member Brian Hermelin’s family.
September 24, 2024: Blue Orca Capital reported undisclosed insider loans involving Sun Communities’ leadership and board members.
September 24, 2024: The report said the Hermelin-family mortgage had not been disclosed in SEC filings.
September 24, 2024: The report also raised concerns about governance, internal controls, and financial reporting. $SUI fell 1.16% following the report.
April 2026: The parties reach a Settlement.
Background:
Sun Communities presented itself to investors as an industry leader with strong governance, growth, and a focus on delivering shareholder returns.
The dispute centers on insider financial dealings that investors say were not properly disclosed. According to the text provided, CEO Gary A. Shiffman received a $3.95 million mortgage in February 2019 from a trust associated with board member Brian Hermelin’s family.
The text also says there were other undisclosed insider loans and financial ties involving Shiffman and board member Arthur Weiss. Investors claim those relationships raised conflict-of-interest concerns and undermined the company’s claims about board independence and governance practices.
On September 24, 2024, Blue Orca Capital published a report disclosing those alleged insider loans and questioning the integrity of Sun Communities’ governance, internal controls, and financial reporting. Following that report, $SUI fell 1.16%.
Investors say Sun Communities misrepresented its governance practices and concealed insider financial dealings. The matter has now moved to a tentative settlement, though the text provided does not state the amount or next key dates.
What Can Investors Expect Now?
Sun Communities has reached a tentative settlement to resolve investor claims that it misled investors about governance practices, insider loans, board independence, and related financial reporting issues.
If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section.
Frequently Asked Questions
All persons and entities, that purchased or otherwise acquired publicly-traded common stock of Sun Communities, during the period from February 28, 2019 through September 24, 2024, both dates inclusive
No, if you have purchased securities within the class period, you are eligible to participate.
You can participate in the settlement and retain (or sell) your securities.
The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.
The final payout amount depends on your specific trades and the number of investors participating in the settlement.
If 100% of investors file their claims - the average payout will be $0.0.57 per share. Although typically only 25% of investors file claims, in this case, the average recovery will be $0.228 per share.
If you're eligible, you can file your claim directly from this case page by clicking the "Collect Payout" button.
More than 100 companies are currently paying out settlements. Connect your brokerage account to automatically check which ones you may have missed — or file manually for this case.
11th.com is an investor recovery company that helps investors track and collect securities class action settlements. We will:
1. Prepare documents for your payout.
2. Audit the claim and make sure you get the maximum possible payout.
3. File a claim with the settlement administration.
4. Correspond with the settlement administration to resolve emerging issues.
5. Deliver payout directly to your brokerage account.
There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.