The Klein Law Firm announces that a class action complaint has been filed on behalf of shareholders of Colony Capital, Inc. (NYSE: CLNY) who purchased shares between August 9, 2019 and May 7, 2020. The action, which was filed in the United States District Court for the Central District of California, alleges that the Company violated federal securities laws.
In particular, the Colony Capital lawsuit alleges that (i) Colony’s sale of its industrial real estate portfolio and the bifurcation of Colony Credit Real Estate’s portfolio were foreseeably likely to negatively impact Colony’s financial and operating results; (ii) certain of Colony’s remaining portfolio companies carried unsustainable levels of debt secured by hotels and healthcare-related properties and were thus at a significant risk of default; and (iii) as a result, the Company’s public statements were materially false and misleading at all relevant times.
Shareholders have until July 27, 2020 to petition the court for lead plaintiff status. Your ability to share in any recovery does not require that you serve as lead plaintiff. You may choose to be an absent class member.
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