SAN DIEGO--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP (http://www.rgrdlaw.com/cases/cbl-associates-properties/) has filed a class action suit against CBL & Associates Properties, Inc. (NYSE:CBL) on behalf of purchasers of CBL securities between July 29, 2014 and March 26, 2019 (the “Class Period”). This action was filed in the Eastern District of Tennessee, is captioned Merelles v. CBL & Associates Properties, Inc., Case No. 19-cv-00193, and is pending before Judge Greer.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased CBL securities during the Class Period to seek appointment as lead plaintiff. A lead plaintiff acts on behalf of all other class members in directing the litigation. The lead plaintiff can select a law firm of its choice. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff, you must move the Court no later than July 16, 2019. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Chris Wood or Brian Cochran of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at email@example.com or firstname.lastname@example.org. You can view a copy of the complaint as filed at http://www.rgrdlaw.com/cases/cbl-associates-properties/.
The complaint alleges that CBL perpetrated a years-long scheme to artificially inflate the Company’s revenues by routinely overcharging the Company’s tenants for electricity. Ultimately, CBL was sued by its own customers in a class action that charged CBL with fraud and racketeering activities. Despite the material risk this lawsuit posed to the Company’s business, CBL and its executives concealed their involvement in the overbilling scheme and failed to disclose to investors that CBL faced tens of millions of dollars in likely legal liabilities.
On March 1, 2019, just one month before the start of trial, CBL finally revealed the existence of the RICO class action, yet falsely claimed the lawsuit was “without merit” and unlikely to result in any losses to the Company. As a result of this partial disclosure, the price of CBL securities declined nearly 8%.
Then on March 26, 2019, CBL announced the settlement of the RICO class action for $90 million and that it would need to suspend its shareholder dividend to fund the settlement. On this news, the price of CBL common stock declined approximately 25%.
Plaintiff seeks to recover damages on behalf of all purchasers of CBL securities during the Class Period. The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For six consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry. Please visit http://www.rgrdlaw.com for more information.