SAN DIEGO & LOS ANGELES--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of Colony NorthStar, Inc. (NYSE: CLNS) have filed a class action complaint against the company's officers and directors for alleged violations of the Securities Exchange Act of 1934 between February 28, 2017 and March 1, 2018. Colony NorthStar ("Colony") is a diversified equity REIT with an embedded institutional and retail investment management business.
View this information on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/colony-northstar-inc
Colony NorthStar Accused of Including False Statements in its SEC Filings
According to the complaint, Colony officials attested to the accuracy of the financial reporting and the disclosure of all fraud in the company's public filings. However, Colony's financial results were not as accurate as the company represented to investors because Colony's Healthcare and Investment Management segments were performing worse than reported. On March 1, 2018, Colony announced a goodwill impairment of $375 million to reflect lower value in its Investment Management business. During the company's conference call that same day, Colony's President and Chief Executive Officer stated, "Our earnings performance has not lived up to expectations, emanating from more challenging industry conditions in healthcare, real estate as well as our retail broker dealer distribution business[.]…" On this news, Colony's stock fell over 22% to close at $6.00 per share on March 1, 2018, and has since continued to fall, closing at $5.58 on April 12, 2018.
Colony NorthStar Shareholders Have Legal Options
If you would like more information about your rights and potential remedies, contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, 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.
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