SAN DIEGO–(BUSINESS WIRE)–The class: Shareholder rights law firm Robbins LLP is advising investors of a class action lawsuit on behalf of all persons and entities who have purchased or otherwise acquired securities of Innovative Industrial Properties, Inc. (NYSE: IIPR ) between May 7, 2020 and April 13, 2022, for violation of the Securities Exchange Act of 1934. Innovative Industrial Properties claims to be an internally managed real estate investment trust (“REIT”) focused on the acquisition, ownership and management of specialized industrial properties leased to experienced, state-licensed operators of their state-regulated and licensed cannabis facilities.
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What this case is about: Innovative Industrial Properties, Inc. (IIPR) has misrepresented its business and financial outlook
According to the complaint, during the class period, the defendants touted his rigorous underwriting standards and extensive experience in the cannabis industry. They also stated that the company’s organization and operations qualify it to be taxed as a REIT for US federal income tax purposes. Nevertheless, the defendants failed to disclose that the value of the company’s properties is significantly lower than represented and that the company’s goal is to be a cannabis company lender rather than a REIT. In addition, Innovative Industrial Properties’ major customers may not be able to continue to make payments and the Company would face significant challenges in replacing these customers.
On April 14, 2022, market researcher Blue Orca Capital released a report describing the company as “a marijuana bank masquerading as a REIT. IIPR’s model is to conduct sale-leaseback transactions with growers cannabis who are otherwise prohibited from borrowing money due to federal regulations.” The report further notes that “[u]As with other REITs, IIPR cannot expect to recover lost revenue from defaulting tenants as it appears that the actual value of its properties is significantly lower than their book value on IIPR’s balance sheet.”
On this news, the Company’s stock price fell $13.76 per share, or 7.5%, to close at $169.68 per share on April 14, 2022.
Next steps: If you acquired shares of Innovative Industrial Properties, Inc. (IIRP) between May 7, 2020 and April 13, 2022, you have until June 24, 2022, to ask the court to name you as the lead plaintiff in the class. A lead plaintiff is a representative party acting on behalf of other class members to direct litigation. You don’t have to be in the case to be eligible for a clawback.
All representation is done on a contingent fee basis. Shareholders do not pay any fees or expenses.
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About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP are dedicated to helping shareholders recoup losses, improving corporate governance structures and holding corporate executives responsible for their wrongdoings since 2002. To be notified if a class action lawsuit against Innovative Industrial Properties, Inc. takes hold or to receive free alerts when corporate executives commit wrongdoing, sign up today at Stock Watch.
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