Sun Communities, Inc.
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the District of Eastern Michigan on behalf of those who acquired Sun Communities, Inc. (“SUI” or the “Company”) (NYSE:SUI) securities during the period of February 28, 2019, to September 24, 2024, inclusive (“the Class Period”). Investors have until February 10, 2025, to apply to the Court to be appointed as lead plaintiff in the lawsuit.
On September 24, 2024, Blue Orca Capital published a report that SUI’s CEO, Gary Shiffman, received an undisclosed $4 million mortgage from the family of independent SUI Board member Brian Hermelin. Blue Orca reports that Hermelin, who has been the Chair of the Compensation Committee and a member of the Audit Committee since 2015, is also a stepcousin of CEO Shiffman and their families reportedly have a “close-knit bond.” Additionally, the report found that CEO Shiffman borrowed money from Arhtur Weiss, a SUI Board member and partner of law firm that serves as SUI’s General Counsel. Blue Orca’s investigation concluded that CEO Shiffman and his undisclosed loans from purported independent Board members greatly “compromises the independent of the Board as a whole, the Compensation Committee and, critically, the Audit Committee.” It also raised “questions as to the integrity of the Company’s governance, controls and financial disclosures.” On this news, the price of SUI stock fell $1.62 per share, from $139.10 per share on September 24, 2024, to close at $137.48 on September 25, 2024.
The lawsuit alleges that defendants provided investors with material information concerning SUI’s accounting practices and internal control over financial reporting.
On September 24, 2024, Blue Orca Capital published a report that SUI’s CEO, Gary Shiffman, received an undisclosed $4 million mortgage from the family of independent SUI Board member Brian Hermelin. Blue Orca reports that Hermelin, who has been the Chair of the Compensation Committee and a member of the Audit Committee since 2015, is also a stepcousin of CEO Shiffman and their families reportedly have a “close-knit bond.” Additionally, the report found that CEO Shiffman borrowed money from Arhtur Weiss, a SUI Board member and partner of law firm that serves as SUI’s General Counsel. Blue Orca’s investigation concluded that CEO Shiffman and his undisclosed loans from purported independent Board members greatly “compromises the independent of the Board as a whole, the Compensation Committee and, critically, the Audit Committee.” It also raised “questions as to the integrity of the Company’s governance, controls and financial disclosures.” On this news, the price of SUI stock fell $1.62 per share, from $139.10 per share on September 24, 2024, to close at $137.48 on September 25, 2024.
The lawsuit alleges that defendants provided investors with material information concerning SUI’s accounting practices and internal control over financial reporting.