Seritage Growth Properties
On August 14, 2023, after the market closed, Seritage revealed that there was a “material weakness” in the Company's internal control over financial reporting “due to a deficiency in the design of our control over the identification of impairment indicators for investments in real estate and documentation of evidence of review.” Moreover, the deficiency related “to the failure to identify potential indicators of impairment related to development projects in a timely manner.” On this news, the price of Seritage shares declined by $0.86 per share, or approximately 9.67%, from $8.89 on August 14, 2023 to close at $8.03 per share on August 15, 2023.
Then, on May 10, 2024, after the market closed, Seritage released its first quarter 2024 financial results, revealing it was “adjusting [its] pricing projections for some of [its] assets.” As a result, the gross value of the Company's portfolio of assets was reduced by at least $325 million. On this news, Seritage’s stock price declined $2.54 per share, or approximately 27.3%, from $9.32 on May 10, 2024 to close at $6.78 per share on May 13, 2024.
The lawsuit alleges that throughout the Class Period, Defendants failed to disclose to investors: (1) that the Company lacked effective internal controls regarding the identification and review of impairment indicators for investments in real estate; and (2) that, as a result, the Company had overstated the value and projected gross proceeds of certain real estate assets.
Then, on May 10, 2024, after the market closed, Seritage released its first quarter 2024 financial results, revealing it was “adjusting [its] pricing projections for some of [its] assets.” As a result, the gross value of the Company's portfolio of assets was reduced by at least $325 million. On this news, Seritage’s stock price declined $2.54 per share, or approximately 27.3%, from $9.32 on May 10, 2024 to close at $6.78 per share on May 13, 2024.
The lawsuit alleges that throughout the Class Period, Defendants failed to disclose to investors: (1) that the Company lacked effective internal controls regarding the identification and review of impairment indicators for investments in real estate; and (2) that, as a result, the Company had overstated the value and projected gross proceeds of certain real estate assets.