Washington Prime Group shares have fallen nearly 71 percent since early March when potential bankruptcy was first reported.
COLUMBUS – An investor in the owners of Southern Park Mall, Washington Prime Group, has filed a class action lawsuit against the company alleging it misled investors about the company’s “deteriorating” financial condition.
Los Angeles-based law firm Glancy Prongay & Murray LLP, which announced Monday that it had filed the lawsuit in federal court in the southern district of Ohio, is now looking for other investors between November 5, 2020 and March 4 Lost the company’s shares in 2021.
The lawsuit was filed on behalf of investor Randy Slipher, according to a press release.
Federal court records indicate that an Oregon entrepreneur named Randy Slipher has also moved to be a lead plaintiff in the class action lawsuit against Lordstown Motors Corp. to be in which similar claims for securities fraud are asserted.
According to the law firm, Washington Prime Group announced on Feb. 16 that it had withheld an interest payment of $ 23.2 million on outstanding debt due in 2024 and has a 30-day grace period to avoid default.
“The Company also noted that if certain counterparties to the Senior Notes were to default, they could expedite the outstanding debt … make such debt due and payable, which would result in cross-default on some of them [Washington Prime’s] or the company’s other debt. ‘”
According to that report, Washington Prime Group (NYSE: WPG) shares fell $ 4.59, or 38 percent, to $ 7.49 per share, according to the law firm.
Following media reports in March that the company was preparing to file for bankruptcy, investors were told that management had “serious doubts” about whether the company could continue. The company delayed payment through forbearance this month and has received several other debt extensions since then.
The lawsuit alleges that Washington Prime executives “made materially false and / or misleading statements and did not disclose material adverse facts about the company’s business, business, and prospects,” the news release states – specifically, that essentially “worsened” the company’s financial condition, that there was uncertainty about the company’s ability to meet its capital commitments, and that positive statements about the business were misleading or “had no reasonable basis”.
Washington Prime Group shares closed at $ 1.84 on Monday. Share prices have fallen nearly 71 percent since the bankruptcy was first reported in early March.
The stock’s 52-week high was $ 17.55. Its market capitalization is currently $ 45 million.