NEW YORK, July 1, 2016 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed on behalf of CBL & Associates Properties, Inc. ("CBL" or the "Company") (NYSE: CBL) and certain of its officers. The class action, filed in United States District Court, Eastern District of Tennessee, and docketed under 16-cv-00195, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired CBL securities between August 8, 2013 and May 24, 2016 inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
If you are a shareholder who purchased CBL securities during the Class Period, you have until July 26, 2016 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at firstname.lastname@example.org or 888.476.6529 (or 888.4-POMLAW), toll free, ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
CBL, a real estate investment trust ("REIT"), purports to be one of the largest and most active owners and developers of malls and shopping centers in the United States, owning, holding interests in, or managing more than 140 properties across 31 states.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) certain of its employees may have provided material non-public information to Senator Robert Corker; and (ii) the Company failed to disclose to its shareholders that certain of its financing arrangements were obtained through fraud and/or misrepresentation; and (iii) as a result of the foregoing, CBL's public statements were materially false and misleading at all relevant times.
In November 2015, a political watchdog group filed a complaint with the Securities and Exchange Commission ("SEC") alleging that Tennessee Senator Robert Corker, who has 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 Senator Corker.
On May 24, 2016, after the markets had closed, the Wall Street Journal reported that CBL is under investigation by both the Federal Bureau of Investigation ("FBI") and the SEC for allegedly inflating the Company's "rental income and occupancy rates for its properties when providing those figures to banks" when applying for financing arrangements, according to former CBL employees who have been questioned by the federal agencies. The article also claimed 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."
On this news, CBL's stock fell by $0.86, nearly 9% on heavy volume, to close at $9.40 on May 25, 2016. This represented a loss in market capitalization of approximately $150 million.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
Robert S. Willoughby
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SOURCE Pomerantz LLP