SAN DIEGO & NEW YORK–(BUSINESS WIRE)–$CBL #ClassAction–Shareholder rights law firm Robbins
Arroyo LLP announces that a purchaser of CBL & Associates
Properties, Inc. (NYSE: CBL) filed a class action complaint for alleged
violations of the Securities Exchange Act of 1934 between November 8,
2017 through March 26, 2019. CBL is organized as a real estate
investment trust.
View this information on the law firm’s Shareholder Rights Blog: https://www.robbinsarroyo.com/cbl-associates-properties-may-19/
CBL & Associates Properties Accused Of Hiding Millions in Lawsuit
Liability for Years
According to the complaint, since 2016, CBL failed to disclose the
existence of a class action lawsuit that could result in hundreds of
millions of dollars in liability. Although CBL defended itself against
the lawsuit for years, it turned out to have no true defense. In 2019,
CBL was forced to settle the case by paying almost $90 million. No
insurance covered these sums, as CBL’s insurer had disclaimed coverage.
To make the situation worse, CBL embarked on a fraudulent scheme whereby
it issued SEC reports that simply pretended that it faced no material
litigation at all. No reserve was taken in the financial statements to
account for any estimated payment. In March 2019, CBL belatedly revealed
the class action suit, but left out key facts and falsely claimed an
inability even to estimate potential exposure. It was blatantly
misleading as a loss was probable and an accrual was required to be
taken under applicable accounting rules. This partial revelation
resulted in CBL’s stock dropping almost 8%. Once news of the settlement
amount was revealed, CBL shares dropped 47 cents, or roughly 25%.
CBL & Associates Properties Shareholders Have Legal Options
Concerned shareholders who would like more information about their
rights and potential remedies can contact attorney Leo Kandinov at (800)
350-6003, [email protected]
or via the shareholder
information form on the firm’s website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder
rights law. The firm represents individual and institutional investors
in shareholder derivative and securities class action lawsuits, and has
helped its clients realize more than $1 billion of value for themselves
and the companies in which they have invested.
Attorney Advertising. Past results do not guarantee a similar outcome.
Contacts
Leo Kandinov
Robbins Arroyo LLP
5040 Shoreham Place
San
Diego, CA 92122
[email protected]
(619)
525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
