Seritage Growth Properties (NYSE: SRG)

This lawsuit is for anyone who acquired securities in Seritage Growth Properties (NYSE: SRG) from July 7, 2022 through May 10, 2024.

The lawsuit alleges that the Company and certain of its executives violated federal law. Specifically, the lawsuit alleges that the Company misled investors regarding its financial condition. More specifically, the lawsuit alleges that the Company misled investors by stating that the Company had effective internal controls regarding the identification and review of impairment indicators for investments in real estate when the Company lacked those controls resulting in the Company failing to timely inform investors that the Company would have to revise its asset valuations.

On August 14, 2023, after the market closed, Seritage revealed that there was a “material weakness” in the Company’s internal control over financial reporting “due to a deficiency in the design of our control over the identification of impairment indicators for investments in real estate and documentation of evidence of review.” Moreover, the deficiency related “to the failure to identify potential indicators of impairment related to development projects in a timely manner.” On this news, the price of the Company’s stock dropped precipitously on unusually heavy trading volume. Then, on May 10, 2024, Seritage released its first quarter 2024 financial results, revealing total net operating income of $2.1 million, down from $8.6 million in the prior quarter. Additionally, the Company disclosed that it was “adjusting [its] pricing projections for some of [its] assets,” and issued a significant downwards revision to its asset valuations for future sales projections. On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume.

The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you acquired securities in Seritage Growth Properties (NYSE: SRG) from July 7, 2022 through May 10, 2024 you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.