The Klein Law Firm announces that a class action complaint has been filed on behalf of shareholders of Colony Credit Real Estate, Inc. (NYSE: CLNC) who purchased or otherwise acquired the common stock pursuant and/or traceable to the Company’s false and/or misleading Registration Statement and Prospectus issued in connection with the combination of Colony NorthStar, Inc. and NorthStar Real Estate Income Trust, Inc. and NorthStar Real Estate Income II, Inc. on or about February 1, 2018 (the “Merger”). 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 Credit lawsuit alleges that (i) the credit quality of certain of the Company’s assets had deteriorated prior to the Merger, and were continuing to deteriorate at the time of the Merger; (ii) certain of the Company’s loans, including four loans of approximately $261 million related to a New York hotel, were substantially impaired, there was insufficient collateral to secure the loans, and it was unlikely that the loans would be repaid; (iii) as a result, the valuation attributed to certain of the Company’s assets was overstated; (iv) that certain of the assets contributed as part of the Merger were of substantially lower value than reflected in the Company’s financial statements and the Registration Statement; (v) as a result, the Company’s financial condition, including its book value, was materially overstated; and (vi) as a result of the foregoing, the positive statements in the Registration Statement about the Company’s business, operations, and prospect were materially misleading and/or lacked a reasonable basis.
Shareholders have until November 9, 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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