CBL & Associates Properties, Inc. (NYSE: CBL)
A class action lawsuit has been filed in the United States District Court for the Eastern District of Tennessee on behalf of purchasers of CBL & Associates Properties, Inc. (NYSE: CBL) common stock during the period between August 8, 2013 to May 24, 2016, inclusive (the “Class Period”).
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements about the Company’s business and operations. Specifically, while defendants repeatedly stated that CBL was “significantly dependent upon external financing to fund the growth of [its] business and ensure that [it] meet[s] [its] debt servicing requirements,” and that CBL’s “access to financing depends on the willingness of lending institutions to grant credit” to it, defendants failed to disclose that CBL was falsifying the financial statements it provided to banks in order to obtain the financing it needed to execute on its business strategy and continue its operations. As a result of defendants’ omissions during the Class Period, CBL stock traded at artificially inflated prices, reaching over $19 per share.
In November 2015, the Campaign for Accountability, a political watchdog group, filed a complaint with the SEC and the Senate Select Committee on Ethics alleging that Tennessee Senator Robert Corker (“Corker”), who had significant personal ties to CBL, may have engaged in insider trading of CBL stock using material, non-public information. CBL was not a named party in that complaint and refrained from comment on the allegations against Corker.
Then on May 24, 2016, an article in The Wall Street Journal reported that the FBI and SEC were investigating allegations that CBL had “falsified information on financial statements to banks when applying for financing arrangements.” Specifically, former CBL employees reported to the FBI that CBL inflated its rental income and properties’ occupancy rates when reporting those figures to banks. The Wall Street Journal went on to report that “FBI and SEC officials have also separately asked questions about the relationship between the company and Mr. Corker, who is close with senior executives at the firm and has made millions of dollars in profits trading the company’s stock in recent years.” As a result of these disclosures, the price of CBL stock fell as much as 12% from its close of $10.26 per share on May 24, 2016, trading as low as $8.98 per share on May 25, 2016.
If you are a current shareholder and/or purchased stock between August 8, 2013 to May 24, 2016, and would like to discuss your options of exercising your rights as a shareholder, please contact us.
Please submit the following information so we can determine if you qualify for the suit. If you don't know all the specific details, partial information is also acceptable.
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