NEW YORK, Aug. 24, 2020 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Colony Credit Real Estate, Inc. ("Colony Credit" or the "Company") (NYSE: CLNC). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 7980.
The investigation concerns whether Colony Credit and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On or about February 1, 2018, Colony Credit issued a Registration Statement and Prospectus in connection with the combination of Colony NorthStar, Inc., NorthStar Real Estate Income Trust, Inc., and NorthStar Real Estate Income II, Inc. (the "Merger").
Then, on August 8, 2019, Colony Credit issued a press release to report its second-quarter 2019 financial results, in which it reported a $119 million provision for loan losses. On this news, the Company's share price fell $2.00 per share, or more than 12%, over two consecutive trading sessions to close at $14.05 per share on August 12, 2019.
Additionally, on November 8, 2019, the Company announced a portfolio bifurcation of certain assets and disclosed a $127 million provision for loan losses. On this news, the Company's share price fell $2.50, or nearly 18%, to close at $11.75 per share on November 8, 2019. Following these disclosures, Colony Credit's shares were trading at approximately $6.59 per share, representing a more than 73% decline from the $25 book value per share valued at the time of the Merger.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris 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
888-476-6529 ext. 7980
SOURCE Pomerantz LLP