Colony Capital, Inc. (CLNY)


Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses Exceeding $100,000 In Colony Capital, Inc. To Contact The Firm 

Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Colony Capital, Inc. (“Colony Capital” or the “Company”) (NYSE:CLNY) of the July 27, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company. 

If you invested in Colony Capital stock or options between August 9, 2019 and May 7, 2020 and would like to discuss your legal rights, please fill out the form below. There is no cost or obligation to you. You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com.  

The lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of all those who purchased Colony Capital securities between August 9, 2019 and May 7, 2020 (the “Class Period”).  The case, Alex Swartzendruber v. Colony Capital, Inc. et al., No. 2:20-cv-04673 was filed on May 26, 2020, and has been assigned to Judge Robert Gary Klausner.

The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) 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; and (2) 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.

On November 8, 2019, Colony announced its financial results for the third quarter of 2019. Among other results, the Company reported a GAAP net loss of $555 million, or $1.15 per share, which “notably included reductions of goodwill, real estate and provision for loan losses totaling $540.3 million . . . of which $387.0 million was attributable to the reduction of goodwill primarily as a result of the pending sale of the Company’s industrial investment management business and related real estate portfolio, and the decrease in management fees from Colony Credit Real Estate, Inc. resulting from impairments related to its portfolio bifurcation.”

On this news, the Company's stock price fell from $5.48 per share on November 7, 2019 to $5.00 per share on November 8, 2019: a $0.48 or 8.76% drop. 

Then, on May 8, 2020, Colony issued a press release announcing its financial and operating results for the first quarter of 2020. In the press release, Colony reported that its portfolio companies had defaulted on $3.2 billion of debt secured by hotels and healthcare-related properties and that Colony had received a notice of acceleration covering $780 million of the defaulted debt.

On this news, the Company's stock price fell from $2.10 per share on May 7, 2020 to $2.02 per share on May 8, 2020: a $0.08 or 2.88% drop. 
 

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Colony Capital, Inc. (CLNY)

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Details

Filed on 05/28/2020

Ticker NYSE:CLNY

Lead Plaintiff Deadline 07/27/2020

Office

685 Third Avenue 26th Floor

10017 New York, New York

Phone (212) 983-9330

Fax (212) 983-9331

Counsel

Richard W. Gonnello rgonnello@faruqilaw.com Phone (212) 983-9330 Fax (212) 983-9331

Finding us

Our Offices


Our offices are nationwide. If you have any questions about a case or our firm, please contact us.

New York

685 Third Avenue 26th Floor
New York, New York 10017
(212) 983-9330
(877) 247-4292
(212) 983-9331

California

10866 Wilshire Boulevard Suite 1470
Los Angeles, California 90024
(424) 256-2884
(424) 256-2885

Delaware

3828 Kennett Pike Suite 201
Wilmington, Delaware 19807
(302) 482-3182
(302) 482-3612

Georgia

3975 Roswell Rd Suite A
Atlanta, Georgia 30342
(404) 847-0617
(404) 506-9534

Pennsylvania

1617 JFK Boulevard, Suite 1550
Philadelphia, Pennsylvania 19103
(215) 277-5770
(215) 277-5771

Faruqi & Faruqi office in New York, New York

Faruqi & Faruqi office in Los Angeles, California

Faruqi & Faruqi office in Wilmington, Delaware

Faruqi & Faruqi office in Atlanta, Georgia

Faruqi & Faruqi office in Philadelphia, Pennsylvania