Robbins Geller Rudman & Dowd LLP announces
SAN DIEGO, April 30, 2022 (GLOBE NEWSWIRE) — The law firm of Robbins Geller Rudman & Dowd LLP announces that buyers or acquirers of securities listed on a stock exchange between May 7, 2020 and April 13, 2022 inclusive (the “Class Period”) have until June 24, 2022 to request an appointment as lead plaintiff in Mallozzi v. Innovative Industrial Properties, Inc., no. 22-cv-02359 (DNJ). Started on April 25, 2022, the Innovative industrial properties The class action accuses Innovative Industrial Properties and some of its top executives of violating the Securities Exchange Act of 1934.
If you have suffered significant losses and wish to act as the lead plaintiff of the Innovative industrial properties class action, please provide your information by clicking here. You can also contact a lawyer JC Sanchez of Robbins Geller by calling 800/449-4900 or emailing [email protected]. Principal Applicant’s Requests for Innovative industrial properties the class action must be filed with the court no later than June 24, 2022.
CASE ALLEGATIONS: Innovative Industrial Properties claims to be an internally managed real estate investment trust (“REIT”) focused on acquiring, owning and managing specialty industrial properties leased to experienced state-licensed operators for their regulated cannabis facilities approved by the state.
the Innovative industrial properties The Class Action alleges that, throughout the Class Period, the Defendants made false and misleading statements and failed to disclose: (i) that Innovative Industrial Properties’ purpose is to be a lender of cannabis company rather than a REIT; (ii) that the actual values of the properties of the Innovative Industrial Properties are significantly lower than what the Innovative Industrial Properties represent; (iii) existential problems with its main customers; (iv) that, as a result, the Innovative Industrial Properties’ major customers may not be able to continue to make payments to the Innovative Industrial Properties and the Innovative Industrial Properties would face significant problems in replacing such customers; and (v) that, therefore, the defendants’ statements regarding the activities, operations and prospects of Innovative Industrial Properties were materially false and misleading and/or lacked reasonable basis at all relevant times.
On April 14, 2022, market researcher Blue Orca Capital released a report on Innovative Industrial Properties, which describes Innovative Industrial Properties, in summary, as “a marijuana bank masquerading as a REIT. [Innovative Industrial Properties’] The model involves entering into sale-leaseback transactions with cannabis producers who are otherwise prohibited from borrowing money due to federal regulations. The report, for example, stated the following: (i) regarding Innovative Industrial Properties’ true business purpose of a cannabis company lender: “[i]n in exchange for overpaying for cannabis company properties and financing leasehold improvements to build the facilities, [Innovative Industrial Properties] receives loan repayment in the form of long-term leases at yields of 11-14%. In effect, [Innovative Industrial Properties] is less of a traditional REIT, and more of a marijuana bank, lending to cannabis companies that otherwise would not have access to the banking system to grow their businesses”; (ii) regarding the real value of the properties of Innovative Industrial Properties: “the market value of the properties appears to be significantly lower than that at which they are [Innovative Industrial Properties’] balance sheet. This is due to the fact [Innovative Industrial Properties], by design, executes the sale-leaseback transaction with cannabis companies at above-market prices to in effect lend money to its tenants who otherwise could not borrow from the banking system”; and (iii) regarding Innovative Industrial Properties’ existential problems with its clients: “Largest Tenant in Debt Default and Accused of Being a Ponzi Scheme in March 2022” from Innovative Industrial Properties, “Second Largest tenant accused of fraud” of Innovative Industrial Properties. in a lawsuit between founders” and “listed tenants grappling with falling stock prices (-46%) and deteriorating cash flow” of Innovative Industrial Properties. On this news, the share price of Innovative Industrial Properties fell by more than 7.5%, penalizing investors.
THE PRINCIPAL APPLICANT PROCESS: The Private Securities Litigation Reform Act of 1995 allows any investor who purchased securities of innovative industrial properties during the class action period to seek appointment as a lead plaintiff in the Innovative industrial properties class action. A principal plaintiff is generally the plaintiff with the greatest financial interest in the remedy sought by the putative class that is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members by directing the Innovative industrial properties class action. The main plaintiff can select a law firm of his choice to plead Innovative industrial properties class action. An investor’s ability to participate in any potential future rally in the Innovative industrial properties the class action does not depend on the status of principal plaintiff.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: Robbins Geller Rudman & Dowd LLP is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases. The firm is ranked No. 1 in the 2021 ISS Securities Class Action Services Top 50 report for recovering nearly $2 billion for investors last year alone, more than triple the amount recovered by any other firm from plaintiffs. With 200 attorneys in 9 offices, Robbins Geller attorneys have secured many of the largest securities class action recoveries in history, including the largest securities class action recovery on record – $7.2 billion dollars – in In re Enron Corp. Dry. Litigation Please visit http://www.rgrdlaw.com for more information.
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Robbins Geller Rudman & Dowd LLP
655 W. Broadway, San Diego, CA 92101
JC Sanchez, 800-449-4900