Robbins Geller Rudman & Dowd LLP Files Class Action Suit against CommonWealth REIT
27 Dezembro 2012 - 8:37PM
Business Wire
Robbins Geller Rudman & Dowd LLP (“Robbins Geller”)
(http://www.rgrdlaw.com/cases/commonwealth/) today announced that a
class action has been commenced in the United States District Court
for the District of Massachusetts on behalf of purchasers of
CommonWealth REIT (“CommonWealth”) (NYSE:CWH) common shares during
the period between January 10, 2012 and August 8, 2012 (the “Class
Period”).
If you wish to serve as lead plaintiff, you must move the Court
no later than 60 days from today. If you wish to discuss this
action or have any questions concerning this notice or your rights
or interests, please contact plaintiff’s counsel, Samuel H. Rudman
or David A. Rosenfeld of Robbins Geller at 800/449-4900 or
619/231-1058, or via e-mail at djr@rgrdlaw.com. If you are a member
of this class, you can view a copy of the complaint as filed or
join this class action online at
http://www.rgrdlaw.com/cases/commonwealth/. Any member of the
putative class may move the Court to serve as lead plaintiff
through counsel of their choice, or may choose to do nothing and
remain an absent class member.
The complaint charges CommonWealth and certain of its officers
and directors with violations of the Securities Exchange Act of
1934. CommonWealth is a real estate investment trust, or REIT,
which primarily owns office and industrial properties located
throughout the United States.
The complaint alleges that, during the Class Period, defendants
issued materially false and misleading statements regarding the
Company’s financial performance and future prospects. Specifically,
defendants misrepresented and/or failed to disclose the following
adverse facts: (a) that the Company was experiencing softness in
the leasing market as the number of leased office spaces,
especially in the Company’s suburban office segment, was below
internal expectations; (b) that existing tenants were demanding and
receiving significant concessions, which was further eroding the
Company’s rental income; and (c) as a result of the foregoing,
defendants lacked a reasonable basis for their positive statements
about the Company’s leverage ratio, occupancy rate and dividend
payout.
On August 8, 2012, the Company announced its financial results
for the second quarter of 2012, the period ended June 30, 2012.
Following the earnings press release, CommonWealth held a
conference call with analysts and investors. During the conference
call, defendant Adam D. Portnoy, the Company’s President and
Managing Trustee, stated that CommonWealth would likely reduce its
dividend because, among other things, the Company’s cash available
for distribution payout ratio had increased to 108%. Moreover, the
Company revealed that its occupancy rate fell to 84.5%, as of June
30, compared to 84.8% on March 31. In reaction to these
announcements, the price of CommonWealth common shares fell $1.57
per share, or 9%, to close at $16.48 per share. The price of the
Company’s shares continued to decline over the next two trading
days to $15.67 per share as the market digested this news.
On October 9, 2012, CommonWealth announced its quarterly common
and preferred dividends. In that regard, defendants announced a
common dividend of $0.25 per common share – a 50% reduction from
the Company’s previous dividend rate.
Plaintiff seeks to recover damages on behalf of all purchasers
of CommonWealth common shares during the Class Period (the
“Class”). The plaintiff is represented by Robbins Geller, which has
expertise in prosecuting investor class actions and extensive
experience in actions involving financial fraud.
Robbins Geller represents U.S. and international institutional
investors in contingency-based securities and corporate litigation.
With nearly 200 lawyers in nine offices, the firm represents
hundreds of public and multi-employer pension funds with combined
assets under management in excess of $2 trillion. The firm has
obtained many of the largest recoveries and has been ranked number
one in the number of shareholder class action recoveries in MSCI’s
Top SCAS 50 every year since 2003. According to Cornerstone
Research, the firm’s recoveries have averaged 35% above the median
for all firms over the past seven years (2005-2011). Please visit
http://www.rgrdlaw.com for more information.
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