LOS ANGELES--(BUSINESS WIRE)--Glancy Binkow & Goldberg LLP announces that purchasers of the common shares of CommonWealth REIT (“CommonWealth” or the “Company”) (NYSE:CWH) between January 10, 2012 and August 8, 2012, inclusive (the “Class Period”), have until February 25, 2013 to file a motion with the Court to be appointed as lead plaintiff. The shareholder lawsuit was filed in the United States District Court for the District of Massachusetts.
CommonWealth is a real estate investment trust, whose primary business is the ownership and operation of real estate, including office and industrial buildings and leased industrial land. The Complaint alleges that throughout the Class Period the defendants issued materially false and misleading statements regarding the Company’s business and financial performance and prospects. Specifically, defendants misrepresented and/or failed to disclose that: (1) the Company was experiencing softness in the leasing market as the number of leased office spaces was below internal expectations, especially in the Company’s suburban office segment; (2) existing tenants were demanding and receiving significant concessions, which was further eroding the Company’s rental income; and (3) as a result of the foregoing, defendants lacked a reasonable basis for their positive statements about the Company’s leverage ratio, occupancy rate and dividend payout.
On August 8, 2012, the Company announced its financial results for second quarter 2012, and subsequently disclosed that CommonWealth’s occupancy rate fell from 84.8% on March 31 to 84.5% as of June 30, and that the Company would likely reduce its dividend because, among other things, the Company’s cash available for distribution payout ratio had increased to 108%. Following this news, CommonWealth common shares fell $1.57 per share, or 9%, on unusually heavy trading volume, and continued to decline over the next two trading days to a closing price of $15.67 per share on August 10, 2012.
If you are a member of the above-described Class, you may move the Court no later than February 25, 2013 to serve as lead plaintiff; however, you must meet certain legal requirements. To be a member of the Class you need not take action at this time; you may retain counsel of your choice or take no action and remain an absent Class member. To learn more about this action, or if you have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1925 Century Park East, Suite 2100, Los Angeles, California 90067, by telephone at 310-201-9150, Toll-Free at 888-773-9224, by e-mail to firstname.lastname@example.org, or visit our website at http://www.glancylaw.com.
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