Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Washington Prime Group, Inc. (WPG)
May 27, 2021 at 12:00 p.m. ET
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Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Washington Prime Group, Inc. (“Washington Prime” or “WPG”) in the US District Court for the Southern Ohio District on behalf of those who bought or otherwise bought publicly traded Washington Prime securities between November 5, 2020 and March 4, 2021 inclusive (the “Class Period”).
The complaint alleges that the defendants have not communicated anything to the investors: (1) WPG’s financial situation has deteriorated significantly. (2) As a result, there has been significant uncertainty about the Company’s ability to meet its capital structure obligations when due. and (3) as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations and prospects were materially misleading and / or unfounded.
On February 16, 2021, WPG announced that its operating partnership, Washington Prime Group, LP (“WPG LP”), “has determined to receive an interest payment due February 15, 2021 of $ 23.2 million on the outstanding senior notes of WPG LP due 2024 ”and that“ WPG LP has a 30 day grace period to make the interest payment before such non-payment becomes a “Default Event”. The company also noted that in the event of default, certain counterparties to the senior notes “could expedite the outstanding debt. . . make such debt due and payable, which would result in a cross-default on some of the other debts of WPG LPs or the Company. In the news, the company’s share price fell $ 4.59, or 38%, to close at $ 7.49 per share on February 16, 2021 in unusually high volumes.
Then, on March 4, 2021, Bloomberg reported that WPG “is preparing a potential bankruptcy filing as time runs out to avert default after skipping an interest payment on its debt, according to those with knowledge of the plans.” In that news, the company’s share price fell $ 3.77, or 60%, to close at $ 2.51 per share on March 4, 2021 in unusually high volume.
Investors who purchased or otherwise acquired shares in WPG during the class period should contact the company before July 23, 2021 Deadline for the main plaintiff’s motion. A lead plaintiff is a representative party who acts on behalf of other class members in directing the dispute. If you would like to discuss your rights or interests in relation to this class action lawsuit, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. by Gainey McKenna & Egleston.
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